Institute of Corporate Directors Malaysia calls for addressing

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  • 13 Mar 2019 12:00 AM
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ICDM Calls for 'rightsizing' of Pay Gap Between Executive and Non-executive Directors

The huge disparity between the remuneration of executive directors (EDs) and that of independent non-executive directors (NEDs) in Corporate Malaysia must be addressed to ensure higher quality and independence, according to the Institute of Corporate Directors Malaysia (ICDM). ICDM president cum chief executive officer Michele Kythe Lim said in light of recent corporate scandals in Malaysia, questions were raised on whether corporates are attracting the right talent as independent directors, and adequate compensation plays a key role in such matters. Managing director of global advisory firm Willis Towers Watson Mark Reid highlighted that "rightsizing" of the pay gap between EDs and NEDs must be made with awareness that NED fees should be kept simple and non-performance related to avoid any conflict of interests. The Malaysian Code on Corporate Governance 2017 stipulates that half of the board members of Malaysian companies should be made up of independent directors.

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