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No pay cuts for GLC chairpersons and CEOs

KUALA LUMPUR, 16 March 2009: The government does not propose to reduce the salaries and allowances of government-linked companies (GLCs)’s chief executive officers and chairpersons given the uncertain world economic situation.

Deputy Finance Minister Datuk Kong Cho Ha said the GLCs’ chairpersons and CEOs were appointed based on their abilities and achievements in leadership to attain set targets.

“If their responsibilities are not discharged well or targets are not met due to their weaknesses and inabilities then shareholders and the board of directors of GLCs can take appropriate action on them,” Kong said in reply to Datuk Ibrahim Ali (Independent-Pasir Mas) during the question and answer session in the Dewan Rakyat today.

Ibrahim wanted to know whether the government planned to reduce the salaries and allowances of GLCs’ chairpersons and CEOs by 50% immediately given the global economic situation as the quantums were rather high and were being criticised by society.

Kong said reduction in salaries and allowances based on something that had nothing to do with their performances or something out of their control was not fair and could adversely affect the performances of the companies in the long run.

He said the quantums given were in line with skills, heavy responsibilities as well as high standards set by the shareholders and board of directors.

Meanwhile, Kong said eight out of 20 GLCs under Khazanah Nasional recorded profits up till the end of last year.

“Tenaga Nasional Bhd had the highest profits of RM2,594 million, Bumiputera-Commerce Holdings Bhd (RM1,952.04 million), Telekom Malaysia Bhd (RM791.90 million) and TM International Bhd (RM497.98 million).

“Malaysia Airports Holdings Bhd  had profits of RM305.20 million, Malaysia Airline System Bhd (RM244.31 million), Proton Holdings Bhd (RM184.55 million) up till the end of last year while UEM World Bhd profits of RM80.37 million for the first half of last year,” he said in reply to Datuk Baharum Mohamed (BN-Sekijang).

Baharum asked about the number of companies under Khazanah Nasional that made profits last year.

Kong also denied an allegation by Baharum of officers, especially CEOs of GLCs, under Khazanah Nasional who did not support the government.

“They function as responsible CEOs who protect the performance of their companies and they have corporate social reponsibility to the people of this country. Generally I am satisfied with the performance of Khazanah (Nasional)’s companies,” he said. — Bernama

 

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