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– Reporting by Natasha Ganesan and Wani Azahar
According to the enhanced Malaysian Code on Corporate Governance (MCCG) released yesterday, Malaysian companies are to make detailed disclosures on the remuneration of individual directors and top five senior managers, as well as have at least 50% of their board members made up of independent directors by year-end.
In its report, MCCG read: “The detailed (remuneration) disclosure allows shareholders to make an informed decision when voting on the approval of directors’ remuneration as well as to understand the link between senior management remuneration and the company’s performance.”
Compliance to the MCCG is not mandatory but serves as a benchmark for companies that aspire to adopt strong corporate governance practices. Additionally, fair remuneration is critical to attract, retain and motivate directors and senior management, cites MCCG.
Nawawi Ahmad, chairman of KTMB said that 862 employees or 15% of the KTMB workforce would benefit from the salary revision.
Nawawi highlighted that KTMB’s top management decided to enforce the revision earlier, in appreciation of its hardworking staff “and as an early gift particularly for those earning lower income”.
In early April, prime minister Najib Razak had approved a salary revision of 13% for all KTMB non-executive staff through the government-linked company and KTMB Workers Union’s 8th agreement.
A revision of 7% was also set for executive staff through a sixth agreement between KTMB and the KTMB Senior Officers Association.
Photo / 123RF