16.10.2020
Justifying CEO/BOD’s remuneration with stock performance
Anything that is money-related has in recent times become a sensitive matter in our daily lives, no thanks to the economic and financial hardship that has befallen the global community following the eruption of the COVID-19 pandemic.
Amid a fragile economic environment where many in the workforce became unemployed or being subject to pay cuts, it is inevitable that minority shareholders are paying close watch on the remuneration package that is doled out to key management personnel, particularly the head honchos of listed companies and their boards of directors (BODs).
Pitted against rising volatility which have taken a toll on stock prices, surely it makes valid sense for investors who are left in the lurch with plunging stock prices to question if it is justified for CEOs and BODs to continue enjoying immense perks at their expense.
Painful revelation
Doubtlessly, the recent findings by the Securities Commission via its Corporate Governance Monitor 2020 (CG Monitor 2020) on the board remuneration package of FTSE Bursa Malaysia’s Top 100 (FBM100) Index constituents (as of 23 December 2019) will likely raise eyebrows.
