Non-executive directors earned an average of RM122,000 per annum in 2013, an increase of 37% from RM89,000 in 2009, according to a study by KPMG Malaysia and Audit Committee Institute Malaysia.
The results of the study, based on the top 300 market capitalised companies on Bursa Malaysia, were published in a report entitled “Study on Non-Executive Directors 2013 – Profile and Pay.”
The study showed that NEDs in the financial services sector were the biggest earners, with each NED receiving an average of RM239,000 per annum.
The upward trajectory in renumeration is because directors are coming under increasing scrutiny and NEDs are expected to vigorously exercise their oversight role, the report stated.
The same report noted that only 11% of NEDs are women; in 2009, the numbers were much lower at 6%.
The Malaysian Cabinet has set a target of 30% of women representation in “decision-making positions” by 2016, but the report noted it could be a tall order given the current low proportion of women NEDs in the study.