Board Remuneration

It is common practice for the Managing Directors and Executive Directors employed to have their remuneration fixed by the Board of Directors.

The Corporate Governance guidelines requires that good quality information on prevailing remuneration levels and trends be made available to the Remuneration Committees of public listed companies. The role of information provider has been undertaken by consulting companies who have depended on a variety of practices.

In the market, there are some of the major survey results available. In the case of the ICC information, it is a managed database where remuneration information is stored and changes are continuously captured to keep the information up-to-date. Information is made available to clients from the database continuously.

ICC was established as an Organization Effectiveness Consultancy assisting in change management of corporatization and privatization projects of Malaysian organizations. Since then, we have also been producing the Remuneration Reports with an emphasis on Malaysian corporations.

We provide the quality remuneration information base on factors which is considered for good remuneration decision making:

The basis of comparison

Job title comparisons are clearly inaccurate because the use of job titles is not consistent. Since the early 80’s, job measurement has been conducted in Malaysia, and usually accurate information using job points is evaluated. In this regard, the use of Weber’s Law states that the threshold of human perception of fifteen percent has become universally applied.

Total Remuneration Information

Covering salary and all elements of total remuneration such as working conditions, workplace benefits, facilities and career development opportunities.

Top Management

The area of information that has been rather guarded has been Top Management and Director level information, because of the confidentiality required. The stability of the Consulting team conducting the survey for Top Management is to be of critical importance.

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