Company annual reports
In learning more about how business is conducted and its related nuances, you can look into public listed companies’ annual reports which are available from the website. Look for “investor relations” link. You will find interesting financial information and ratios which can guide you to make an investing decision.
Petronas Chemicals Group Berhad
The Kuala Lumpur Component Index comprises of the 30 largest companies by market capitalization. In this example, we will look through Petronas Chemicals Group Berhad. Bare in mind, that KLCI has 3 Petronas companies listed, this is only one of it. Below is the company asset size and revenue for 2015.
- Total asset: RM30,833 million
- Revenue: RM13,536 million
- Profit: RM3,091 million
- Key management personnel director fees: RM718,000
For those working in the corporate world, it is interesting to benchmark salaries of top corporate figures. An example, the key management personnel director fee listed in the annual report is RM718,000. This works out to RM59,833 per month. It is by no means high in comparison to large global corporations.
To point out the obvious, the highest paid executive in the company is usually the Chief Executive Officer.
How would you like to earn a RM60,000 salary?
With that income, it would definitely propel you to the top of range Malaysia’s income bracket. You can also check out what the top 20% Malaysian mean monthly income.
Looking across the globe, the world’s highest paid CEO, John Hammergren of McKesson is paid US$131.2 million.
How is compensation decided?
The director compensation plan is usually decided by the remuneration board which comprises of senior corporate figures to decide the performance of the key management personnel. The individual performance is also bench marked in relation to the size of business responsibility through revenue and profit.
Apart from the CEO’s salary, the major part of compensation for top management is from stock options and bonuses. In this annual report, the CEO’s direct shareholding is listed as nil.
This inspires me to contribute more towards the business and there are great opportunities to develop oneself towards the highest position in the company. Do you think now of how long to wait for a career progression?
What is your long term personal development plan to get there?
In summary, there are also larger corporate entities in Malaysia with a large range of CEO compensation.
How about at looking at another conglomerate? Is there really a large range to CEO compensation? Click here to find out how much the range really is.
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