News Bursa CEO's 57% pay rise spurs questions

News Bursa CEO's 57% pay rise spurs questions
Business & Markets 2013
Written by Lee Wen Ai of theedgemalaysia.com
Thursday, 28 March 2013 14:13


A + / A - / Reset
KUALA LUMPUR (Mar 28): A 57% year-on-year increase in the remuneration package of BURSA MALAYSIA BHD []'s CEO Datuk Tajuddin Atan grabbed the attention of Minority Shareholders Watchdog Group and piqued interest from shareholders at the company’s AGM today.

Tajuddin’s pay package was raised from RM3.5 million in 2011 to RM5.5 million in 2012.

A few shareholders raised the question on the CEO’s salary at Bursa's 36th AGM at PWTC today. They wanted the board to explain why the CEO's pay in 2012 was “more than doubled” from the previous year when the stock exchange's performance was "not impressive".

"The increase was partly due to a full year's pay in 2012 as compared to just 9 months' pay in 2011 (because Tajuddin was appointed in April 2011),” said Bursa's chairman Tun Mohamed Dzaiddin Haji Abdullah.

"The CEO package is competitive with other listed companies and is a competitive package for a CEO of an exchange. The board is mindful that fair remuneration is critical to attract and retain the best talents," he added.

At the AGM, a shareholder also asked what Bursa's role was following an increasing trend of listed companies being taken private, wiping billions off the exchange. And after several years, these companies got relisted.

"When [privatisation and relisting of the same companies] happens, I think someone is making money but not us shareholders," remarked the shareholder.

To that question, Tajuddin responded:

"Bursa has engaged with its stakeholders on this. The conclusion was that these corporate exercises were business decisions.

"Bursa will continuously look for new quality companies with good valuations to list on the exchange, in line with the freer flow of funds and investors in ASEAN and the ASEAN Trading Link."

Reporters covering the AGM were banned from taking any notes or using recording devices and mobile phones.

ahtan: i didnt take salary bro, so my performance kau kau gib u see