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Tuesday, July 1, 2008

Business, Economic & Finance: GLC CEOs pay generally lower

"KUALA LUMPUR: The rumoured 100% rise in the pay packages of Tenaga Nasional Bhds president and chief executive officer (CEO) Datuk Seri Che Khalib Mohamad Noh and chief financial officer Datuk Mohd Izzadin Idris, which has been widely discussed on blogs, has again raised the perennial debate on how much CEOs should fairly receive."

This is a very difficult question to answer. The best would be for the salary to commensurate with the returns of the company. However, this will mean that good CEOs will only be interested to work for big companies. The best is to have a standard basic package for all CEOs regardless of the size of the individual companies. Performance related bonuses can be added later.

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