When will we demand explanation for high pay and bonus to CEO who cheat the Rakyat?
Please explain your pay - ASIC
COMPANIES are still failing to properly explain how they pay their executives, the corporate watchdog says.
The Australian Securities and Investments Commission yesterday renewed its call for more details of how pay packets are calculated, despite a fall in the number of votes against remuneration reports in the latest company meeting season.
Shareholders carried non-binding votes against the remuneration reports filed by just two ASX 300 companies, casino group Crown and struggling clothing group Pacific Brands, the least since 2006.
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But ASIC said its review of 50 remuneration reports filed by ASX 300 companies found some were still failing to give enough information about four key areas: the board's general policy for setting pay, the use of non-financial performance indicators such as safety and customer satisfaction, the reasons why particular performance hurdles were chosen and the terms of incentive plans such as cash or share bonuses.
The deputy chairman of ASIC, Belinda Gibson, said that disclosure of incentive plans should include telling shareholders of any dividends reaped as a result of employee share plans.
She said the relationship between performance and pay ''should be able to be set out in really broad and simple terms'' and, while executive pay packets frequently contained ''lots of zeroes'', they were often not a substantial item compared with company revenue or profit.
''The real issue is it's far more than ordinary working people earn and so people, be they shareholders or for that matter staff, need to understand the justification for such handsome rewards.
''Overall we think the companies doing really well are continuing to do really well, there's some improvement at the mid-level and the companies were struggling before are probably still struggling.''
ASIC also raised concerns that executives might break the law by voting on the adoption of remuneration reports.
It wants companies to make greater efforts to exclude votes by executives and related parties.
''If a director and his wife have shares in a private super fund and that's held at a custodian, there's no way anyone just looking at the register can possibly know whether that is that person or anyone else,'' Ms Gibson said.
ASIC also provided extracts from what it described as ''better examples of disclosure'' uncovered during its review.
While it did not name the companies involved, BusinessDay has identified some as Asciano, Wesfarmers and Abacus Property Group.
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TNB CEO Che Khalib was paid RM1.1 million in 2007
According to TNB’s 2010 annual report, its President/CEO, Dato’ Sri Che Khalib Mohamad Noh, 45, for the financial year end 31 August 2010 was paid a total of RM1.8 million, which works out to about RM150,000 per month.
Of the amount, RM1.2 million is basic salary, which works out to be RM100,000 per month.
The second highest paid person in the company is its Executive Director/COO, Dato’ Ir Azman Mohd, 53, paid a total of RM755,000 during the same period.
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It was reported back in 2008 that according to Tenaga Nasional Berhad’s (TNB) 2007 annual report, the total remuneration for Datuk Seri Che Khalib Mohamad Noh, its CEO that year was RM1.1 million.
His basic salary was RM600,000 that year, which works out to be RM50,000 per month.
Hence, in total, he received an average of about RM92,000 per month.
TNB is the biggest power and utility company in Southeast Asia.
However, in mid 2008, it was proposed that his salary be doubled!
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Many are asking why CEOs hired by UMNO Government are paid enormous salary when all they do is lose money for the companies under them.
Khalid from TNB is one good example, his job function is to make money for himself and losses for TNB. To do that he had come up with the alternate month estimation which generate millions by cheating the consumers.
For the past one and half years now he again came up with another scheme to cheat the consumers. Change meters to run faster at certain times to show more usage. And fix the usage 150 times more from your history chart. And if the estimated figure is not met, a surcharge is impose on the consumers. This scheme is still been tested on selected few like myself. Right at this moment instructions have been given to go slow on changing some more meters because of many complaints. But I was told they will go a faster pace in March so that Khalid can enjoy a bigger bonus for his retirement in June.
People like Khalid can get away from their crime because the Rakyat allow them to do so.
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