The MSW G and Executive Pay.

Executive pay has been the bane of governance for over two  decades. In Malaysia it is not new either and from time to time this becomes a hot issue hitting our front pages.

Two days ago the executive pay of a CEO hit the headlines and for justifiable reasons. The main objectors were institutional investors and the Minority Shareholders Watch Group (MWSG).

Let me be very forthright, my gripe is not with the institutional investors for raising this issue(they have a reason), but more with the MSWG.

As I  said the topic of executive pay is not new, so can the MSWG please provide the following information: 

1. Since their inception how many times have they raised the issue of executive pay on their own, not latching onto the coat tails of others. 

2. Apart from the issue of executive pay, can the MSWG provide instances where they have raised burning issues with regards to governance related matters. I have friends that have labelled the MSWG as a "waste of time" for reasons of their cursory questioning and timidity.

3. Can the MSWG please make a public disclosure on their ownership and funding structure and then provide a list on how many times they raised governance issues in entities that their stakeholders are involved with.

As my friends says, the MSWG is a waste of time, it's like many institutions in Malaysia, nice to have, but when it comes to implementation and enforcement it is a case of hiding under the desk.

PS:

Don't get me wrong, I am all for managing executive pay, but

1. No knee jerk reaction, it must be performance based.

2. Pay international rates even to Malaysians, if need be, if not in future we will continue to complain about the brain drain. 

3. The world has been trying to come to a landing on what is a fair remuneration, but till today cannot do so. Look at the Anglo - Dutch IOC, they made a mistake on the Chairman's remuneration in the early 2000s and the did it again recently. Hence a lot of work and time needs to be put into this area.

4. Finally guys stop attacking the receiver, the culprit are the givers. Its like like when we are caught for a traffic offence, most times its "boleh selesai", its rare that we will accept the summons and pay the fine. After which we complain about our corrupt enforcement agencies.  

In a similar light, why has the Nomination and Remuneration Committee not been taken to task. After all they agreed on the executive package and they were supposedly measuring it and agreeing payment, or was it a case of saving their own seats on the board, so silence was the better route?

So MSWG, do your job, become relevant or else close shop and save your stakeholders the money!  Governance issues are not politics they are factual and many private investors need someone that they can rely on.  

Corporate Malaysia needs an effective watch dog and you are certainly falling very short!