Thursday, April 7, 2011

Najib: Private sector CEOs receive higher salaries and benefits

Source: (Reports by MARTIN CARVALHO, YUEN MEIKENG and JOSHUA FOONG, 7/4/2011)

THE pay scales and benefits of chief executive officers (CEOs) of Govern­ment-linked companies (GLCs) in four major industries are considerably lower than their counterparts in the private sector, Finance Minister Datuk Seri Najib Tun Razak said.

In a written reply to Lim Lip Eng (DAP–Segambut), he said the incomes and benefits received by the CEOs of GLCs were based on their work experience, expertise and performance. The amount of benefits given to the CEO of GLCs was based on guidelines in the Blue Book, Increasing Management Performance, which was published by the Putrajaya committee for high performance GLCs, he added. Najib said the income levels of the CEOs of the GLCs are commensurate with their responsibilities and the achievements based on their respective KPIs. The KPIs are aimed at transforming the GLCs into high-performing companies.

Najib said the CEO of power utility company YTL Corporation Bhd received an annual income and benefits amounting to between RM3.6mil and RM10.2mil between 2006 and 2009. However, the Tenaga Nasional Bhd CEO received between RM0.8mil and RM1.4mil annually for the same period.

In the banking sector, the CEO of Public Bank Bhd is the highest paid banker in the country, with an annual income and benefits of between RM4.7mil and RM6.1mil from 2006 to 2009. However, Maybank Banking Bhd CEO received between RM1.4mil and RM4.9mil for the same period, he added.

Najib said for the airline industry, the CEO of AirAsia Bhd received an annual income and benefits worth between RM1mil and RM6mil from 2006 to 2009. However, Malaysia Airlines’ CEO got between RM0.9mil and RM1.5mil for the same period.

In the automotive industry, the CEO of Tan Chong Motor Holdings Bhd received an annual income and benefits of between RM4.5mil and RM4.95mil compared with the CEO of Proton Holdings Bhd, who received between RM0.5mil and RM1mil in the three-year period.

Related news: Gov't reveals earnings of GLC heads

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