Shareholders group: Be transparent on directors’ pay packages

Remuneration packages for company directors must be based on transparent procedures and be closely-linked to performance if it wants the support of minority shareholders and investors.

Minority Shareholders Watchdog Group (MSWG) chief executive officer Abdul Wahab Jaafar Sidek said real performance is what counts ultimately for investor confidence.

“When directors look for more pay rises, shareholders automatically react to demand higher reported earnings and returns on their share prices. More pay rises simply make directors more accountable for investor expectation,” he said in a statement to Business Times.

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