malaysia ceo

How much does a CEO in Malaysia earn?

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.

Stock options

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.

Inspiration

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.

Related:

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Are you happy with your salary increase? Read this article on Average salary increase per year & inflation

Thinking of career progression? Read this article on Career progression: how long to wait for a promotion before looking out

Thinking of attending the next interview? Read this article on How to stand out in an interview? 5 ideas to make a good impression

Afraid to make mistakes in the next interview? Read this article on 5 common mistakes to avoid during an interview

Feeling dissatisfied with work lately? Read this article on Are you feeling disengaged from work? 4 simple ways to know

Thinking of how to choose your next job? Read this article on How to choose your next job? 7 criteria to consider before accepting

Thinking of career development? Read this article on How to develop your career and 4 steps to achieve what you want

2 Comments

  • Mo says:

    >Key management personnel director fees: RM718,000
    >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?

    Do you know the different between a CEO and directors?
    That fees are meant for directors, not CEO.
    Please correct this.

    • admin says:

      Dear Mo,

      Thank you for your comment.
      I do know the difference between CEO and directors. From a quick web search as below, we know that key management personnel is not limited to board of directors. It includes active management personnel on company daily activities. This does not preclude the chief executive officer.

      Secondly, I have not come across board directors who are paid higher than the CEO. With the exception of substantial shareholders acting as CEO, taking a US$ 1 salary such as Steve Jobs and Howard Schultz.
      With that understanding, I have come up with the conclusion.

      I do hope that you can provide a valid reason to correct the article. I will be willing to make the necessary changes. Thank you.

      http://www.accountingtools.com/dictionary-key-management-pers
      Key Management Personnel

      Definition: Key management personnel are those people having authority and responsibility for planning, directing, and controlling the activities of an entity, either directly or indirectly.

      This designation typically includes the following positions:

      Board of directors
      Chief executive officer, chief operating officer, and chief financial officer
      Vice presidents

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