Employment benefit that is worth your while Part II

For financial year ended 31 December 2009, CIMB Group paid out RM21,323,000 as total directors remuneration, with RM16,124,000 for 2 executive directors.

By Lee Wee Tak

Last month, my blog post here elicited this comment

Anonymous said…

I am no fan of this banker, but in order to be objective one should compare with similar positions in other banks as well

I think you have missed the point then. Comparison of the share option price vs the ESOS and what a 3rd party had to pay was clear enough….and anony #3 eloquently added on to it. No matter, benchmarking is what you seek and benchmarking is what you’ll get. I already have the annual accounts of Maybank and CIMB when I wrote the first piece.

For financial year ended 31 December 2009, CIMB Group paid out RM21,323,000 as total directors remuneration, with RM16,124,000 for 2 executive directors

A staggering RM14,500,000 was paid to Nazir alone, which represented 68% of the total remuneration of all directors, or 90% of the total executive directors’ remuneration.

In addition, he held 27,463,261 ordinary shares as at 31 December 2009 (the next highest director shareholding was Md Nor Md Yusuf at 400,000 shares) with interim and final dividend of RM0.25 for financial year ended 31 December 2009, there was another RM6,865,815 dividend for him; more than 4 times the total remuneration for the year of the other executive director, Mohd Shukri Husin.

Maybank Berhad has been around longer than CIMB and one of the leading banks in Malaysia.

Total profit before tax and zakat for CIMB for financial year ended 31 December 2009 was RM3,811,877,000 and total revenue, broken down as follows:

Interest income 10,539,770,000 ; income from Islamic banking operations 807,060,000; Non-interest income 3,793,557,000 making it a grand total of RM15,140,387,000

By comparison, Maybank has a larger revenue base was RM17,586,337,000 with profit before tax and zakat of RM1,674,292,000; lower than CIMB due to impairment losses on associates & goodwill of RM1,972,585,000

With a larger revenue base, yet total directors’ remuneration was merely RM8,647,000; less than half of CIMB.

Read more at: http://wangsamajuformalaysia.blogspot.com/2010/08/employment-benefit-that-is-worth-your.html