Many were shocked when the salary of a CEO from one of Malaysia’s biggest companies became known to the public recently.
According to The Star, the chief executive officer of Sapura Energy Bhd, Tan Sri Shahril Shamsuddin, was nearly ousted as the company’s director and CEO due to unhappiness over his salary. The CEO reportedly earned a whopping RM71.92 million in the past financial year, as of 31st January 2018. That’s roughly RM200,000 a day!
Source: the star
However, despite institutional investors, including the Employee’s Provident Fund (EPF) wanting to remove him as CEO, Tan Sri Shahril, who also owns a 17.44% stake in Sapura Energy, managed to keep his position after getting 82% of votes at the company’s annual general meeting yesterday (18th July).
Institutional investors along with the Minority Shareholder Watchdog Group (MSWG), deemed the CEO’s income excessive. MSWG general manager Lya Rahman was quoted by The Edge Markets as saying,
“This is the first time that the Institutional Investors Council has taken this collective decision to vote against (directors’ re-election). His pay package has been excessive over the years.”
Source: malaysian insight
“We oppose the re-election of the independent directors because every year we keep seeing the same thing happening, especially with the excessive director remuneration.”
In the company’s 2018 annual report, Tan Sri Shahril reportedly earned RM7.24 million and was even rewarded a RM55 million bonus, along with RM9.34 million in defined contribution plan, and RM348,000 in various benefits-in-kind.
The CEO’s total earnings over the past financial year (FY18) were reportedly equivalent to 1.22% of Sapura Energy’s revenue of RM5.89 billion in FY18.
What do you think of this CEO’s salary? Let us know in the comments below!
Also read: All Cabinet Members Will Get 10% Salary Cut to Reduce Govt Expenses, Tun M Says
