A Kadir Jasin
PREAMBLE: Views expressed herein are
entirely mine. I am writing in my personal capacity as a blogger. It has
nothing to do with whatever position I may hold.
PM asked profitable companies to pay their employees better |
OLD habits die hard and old dogs are said to be unable to learn new
tricks.
Some dog owners are themselves unwilling or unable to
learn new tricks that can be taught to their younger dogs and puppies.
So even thought the Barisan Nasional (BN) government had
been ousted and replaced by the Pakatan Harapan (PH) more than 10 months ago, old
bad habits are still very much alive.
Reforms and new ways of doing things seem not to have the
desired effects on everybody.
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So we still hear stories of chief executive officer of a
government linked company (GLC) nonchalantly said he could not remember his remuneration
package when asked by the Council of Eminent Persons (CEP).
It turns out that he was paid something like quarter a
million ringgit a month and his annual package was in excess RM7 million.
He had since left the company
and a new man was appointed to the post apparently with a more modest
remuneration package but still unimaginably generous.
More recently the chairman of another GLC has had his
contract cut short and his peers on the board recommended that he be paid
compensation in excess of RM4 million.
This is in spite of him having amassed shares worth nearly
RM140 million in companies belonging to the group he chaired, presumably through
share option and other reward schemes.
His remuneration last year was in excess of RM5 million.
It is not at all surprising because almost all the board
members are his peers. They have been on the board together like forever. One of
them had been a board member for nearly 30 years.
So I don’t know if the government should or would agree with
the board’s proposal to offer this person such a generous compensation.
Corporate Incest
Sometime before the fall of the kleptocratic government of
Datuk Seri I Mappadulung Daeng Mattimung Karaeng
Sandrobone Sultan Abdul Jalil Mohd Najib Abdul Razak, I
wrote about the incestuous relationship involving several GLCs implicated in
the 1MDB, FGV and Tabung Haji scandals.
That was during the Tabung Haji-TRX land deals controversy.
I noticed that these companies shared board members and
were seen to be doing Najib’s bidding in concert.
Many of them had since been removed and some are even
facing criminal and civil actions. Those who remain should also be terminated in due course.
It would appear that during the kleptocratic “Cash is King” days,
many GLC heads and board members joined their political masters in a get-rich-quick
scheme of sorts.
They happily rewarded themselves with huge salaries and
fat performance bonuses when their companies are actually monopolies and oligopolies, and are not actually doing that well.
Recently, a middle-ranking officer of a large GLC bank
complained to me that while the big bosses rewarded themselves with fat bonuses,
the middle and lower management and ordinary staff were given pittance.
At the Invest Malaysia Capital Market Forum in Kuala
Lumpur on March 19 last, the Prime Minister Tun Dr Mahathir Mohamad, urged
profitable companies to pay their workers better.
The government has no direct control on private sector
companies but it has a wide say in the GLCs. As such the proposal for a better
and more equitable remuneration package should start with the GLCs.
Additionally, in line with government’s commitment to
raise governance, integrity and anti-corruption bar, action must be taken against GLC executives and board members – past
and present - who are involved in corporate legal breaches like money
laundering, insider trading, non-disclosure of mandated information and failure
to perform fiduciary duties.
Generous rewards must be accompanied by harsh punishments for wrongdoing.
Wallahuaklam.