UPDATED Tenaga’s employees’ benefits have increased by 81 per cent over the last two years, compared with only a 14 per cent rise in wages and salaries. That’s what a quick look at its financial statements reveals.
The Khazanah head honcho had earlier defended the high salaries paid to the top officials in GLCs in this excerpt from a report in The Star today:
His comments, as reported by Bernama, were in response to comments in blogs that Tenaga Nasional Bhd (TNB) CEO Datuk Seri Che Khalib Mohamad Noh and CFO Datuk Izzadin Idris were getting a huge (an unconfirmed 100%) salary increase.
The timing of the proposed salary increment has jolted many Malaysians now experiencing a strain in their monthly incomes after steep rises in fuel, energy and escalating food prices.
Quoting Khazanah’s Blue Book, which details executive compensation and institutionalises salaries, Azman said: “We cannot pay too low, we shouldn’t pay too high but we have to pay enough, and we have to pay fairly”.
Based on the company’s latest annual report, Che Khalib’s total remuneration last year was RM1.1mil, of which RM600,000 was his annual salary.
Azman, the Khazanah MD, said:
“The average Malaysian company pays three months’ bonus. What we are saying is that we will pay more, as long as the company and shareholders make much more than that.
“That means value must be created,” he told reporters after attending the opening ceremony of the MIT Sloan Global Entrepreneurship Lab Programme workshop facilitated by Khazanah.
“That is a very important point. It is performance-based, incentive-driven and self-funding. We are not taking money away from anybody but creating more value,” he added.
Err, how can he say they are not taking money from anybody when Tenaga has just raised tariffs and the public have to cough up more?
For the financial year 2007, Tenaga, the privatised government-linked electricity firm, made a profit of RM4.1 billion, which includes a forex translation gain of RM486 million.
Let’s have a look at Tenaga’s staff costs for FY2007:
STAFF COSTS
Group
2007
RM’million
Wages, salaries and bonuses 1,429.1
Defined contribution retirement plan 152.0
Retirement benefit plan 249.0
Retirement medical plan 400.2
Employees’ Share Option Scheme II 35.7 0
Other employee benefits 126.1
Total 2,392.1
So we can see that the retirement plans and other employee benefits add up to a whopping RM963 million. This excludes wages, salaries and bonuses. (Does this include EPF? How much of these retirement plans are for top management?)
Anyway, with total employees of 28,822:
- wages, salaries and bonuses work out to RM49,583 for the year for each employee or RM4,132 per month.
- employees’ benefits work out to RM33,412 for the year per employee.
- total staff costs work out to RM6,916 per month for each employee.
Compare that to FY2005:
Net profit for the financial year 2005 was RM1.28 billion
And the staff costs in FY2005:
STAFF COSTS
Group
2005
RM’million
Wages, salaries and bonuses 1,255.0
Defined contribution retirement plan 129.7
Retirement benefit plan 192.1
Retirement medical plan 94.7
Other employee benefits 116.4
Total 1,787.9
If we add up the retirement plans and other benefits, it comes up to RM533 million.
Anyway, with total employees of 27,727 back then:
- wages, salaries and bonuses work out to RM45,263 per year for each employee or RM3,772 per month.
- employees’ benefits work out to RM19,219 for the year per employee.
- total staff costs work out to RM5,373 per month per employee.
That means employee benefits have risen from RM533 million to RM963 million within two years, a rise of 81 per cent (or 74 per cent on a per employee basis)! Creating “value added” for TNB, eh?
However salary, wages and bonuses in terms of value increased by less than 14 per cent (or 10 per cent on a per employee basis) during the same period.
Please explain why employee benefits have risen so much faster. I wouldn’t begrudge TNB’s rank-and-file workers a higher amount of benefits, but has the bulk of the increase really gone to them – or to top management?
Can someone tell me how much the bottom-rung TNB employees earn? And what kind of benefits they get? And then we can see how far they are below these average figures….
TNB already losing so much of money to the IPPs, now this…..
Go to Naza Automall in PJ, you see so many Lamborghini Gallardo’s at about 2 million each. So many already snapped up.
Many Bentley Continental GT going for 1.2 million too, many snapped up.
And the majority of the public, especially the poor Malays, are suffering to buy rice which has gone up so much. Milk also has doubled. We crack our heads everyday and shop around between Giant, Carrefour and Jusco, which sells 1 or 2 ringgit lesser. Then we go there to buy it to save RM1 or RM2 because RM1 or RM2 means a lot.
Whilst the cronies buy their Lamborghinis and Ferraris, poor mothers who cannot breast feed their children are using Condensed Milk (The ones the mamak uses to make teh tarik) to feed their newborn babies.
http://www.malaysia-today.net/2008/content/view/8904/1/
Shocking Asia. Shocking Malaysia.
Complain about this comment
Like or Dislike:
0 
0
Kazanah boss said it the best,i hope you no be grudge with this, with a boss speaking english this way i think he should have given a 200% RISE.
Complain about this comment
Like or Dislike:
0 
0
The other day I was at a Tenaga Office and there came heavily tinted chauffer driven Proton Perdana that went right up to the porch of the main office.
Immediately, a security guard ran to the car and opened the back door.
Alighted an officer with a coat in one hand.
Later I found out this was just the district manager. These are the one-eyes kings in the kingdom of the blind.
Little wonder the income disparity in Malaysia is the second highest in Asia, next only to Papua New Guinea.
They live off the sweat of the poor in the company.
Complain about this comment
Like or Dislike:
0 
0
This 100% increase in the Tenaga CEO’s & FCO’s salary is not only unjustifiable, it is in poor taste and makes a mockery of the current call by our PM and Ministers to the general public to ‘tighten the belt’ in the wake of 40% increase in petrol pump prices and expected 1% jump in inflation. It is downtight obscene!!
The Tenaga Remuneration Compensation Committee, if there is one, does not seem to understand that Tenaga, being a monoploy, has relied almost exclusively on tariff hikes, to boost its bottom line. So, whither the outperforming CEO? Has he successfully re-negotiated all those giveaway ‘Take or Pay contracts with IPP’s? Not that I heard of! And why does the CFO deserve a 100% hike, what is his contribution to the profits above the norm or minimum KPI’s?
In sharp contrast, the staff are told to accept no more than 5% increase. The proud French monarchy disappaeared after 1789 when they derisorily conveyed to their starving people to ‘Let them eat cake!’
So, just like GE 2008, the ordinary shareholders and staff of Tenaga, who hold 1 lot each, and the Minority Shareholders’ Watchdog must go the next AGM and vote the Board of Directors out. That is the only drastic action that will sent a clear message to these uncaring b******* that we will not take it lying down, anymore!!
Complain about this comment
Like or Dislike:
0 
0
Nation pride supercedes the welfare of the people. Now we public paying for their pay rise (80%). Privitisation is same like gambling with public life. Just see around when Dr Moron introduce privatisation in 1990s, it created development but Rakyat is paying for it on top of the taxes to maintain the development. Do we really need this type of development? What rakyat need milk/rice cheaper or development?? It shocked me that in less 24hrs Tenage announce the tariff increase after fuel increased 40%. Most of dams in Malaysia is hydro, running with water and how do this effect them. Also BMW, MAZDA, HONDA, GM have invented cars running with water in 2007 and will our BN Govt will being in this model. I doubt so because again they want to protect their pet Khazanah companies which consist of Petronas and Proton and Rakyat have to pay thru their a** for their survival.
Complain about this comment
Like or Dislike:
0 
0
Hi
fellas switch off all your lights and sit in the dark and start brooding and even if that doesn’ help enroll yourself with new political parties and wait for the call sign. Best of luck…….
Complain about this comment
Like or Dislike:
0 
0
The Senior officers of all GLC are enjoying their life. High salary, perks and benefits, entertainments, expenses taken care, foreign trips in the name of seminars and study tours, scholarships for their kids, woooow!!!!!! U name it, they got it. It is the man on the street the poor salary earners are the suckers who had to toil for every ringgit. This the creation of Mahathir and UMNO, they so called defenders of the Malays.
Complain about this comment
Like or Dislike:
0 
0
Khazanah’s MD said the GLCs must paid its top staff along the same line as international firms but with its “limited parameters” for suitable candidates, it is not getting the best of the best but just the best of the worst. Why then it should benchmarked the pay to international standard ?
If the CEO is independant enough to cut workforce, costs and renegotiate the IPPs contract, then yes, I would said its a tough job. As it is, the TNB tariff is still decided by the Govt. You cant just pay the best, the works is to follow political orders and limit top management posts to only certain people.
Until the days Khazanah can accept the best of the best for all GLCs posts, Azman Mokhtar’s statement definitely doesnt hold waters.In the first place, how did he get there? Same parameters chosen by the “great” PM and his “even greater” SIL. Best of the worst ? Or dare he said best of the best? Bet he cant even passed the test of shortlisted for VP post in any big international investment banks in Spore.
Complain about this comment
Like or Dislike:
0 
0
Emm..gaji ceo naik yer…gaji kita org kat tnb ni tak naik2 lagi
dah lebih setahun pun..baru ni minta CEO lulus 3% ja kenaikan..tapi ceo naik 100%..bagus..syabas ceo
Complain about this comment
Like or Dislike:
0 
0
It seems that Tenaga is making profits.
Time to re-invest some of it into solar panels to generate electricity.
i recommend using ‘thin film’ solar panels because they are cheaper to purchase.
Malaysia is hot. when the sun shines, tenaga will get free power.
win-win situation.
-Jack
Complain about this comment
Like or Dislike:
0 
0
This is what you call “orang tamak”. to all the UMNO and BN supporters here is you payment for voting in morons, so the next time you are having a nasi rumput.. (rumput substitute rice), with gulai tikus… (tikus substitute chicken), think about all the suffering the “tuans of bn and UMNO” are going through, “change lifestyle” pm says, than goes and gives payrise to the vip’s, next time you umno supporters, when your 10 children cry because they are hungry and you being a useless parent, who went and listened to umno and made babies… and being useless by not thinking and pproviding for your children, THANK UMNO, VOTE FOR UMNO AND THEIR EMPTY PROMISES, HAHAHAHAHAH, BODOHNYA, ‘umno leaders CAKAP TAK SERUPA BIKIN, MANA MARUAH, tak malukah. you have lied to your people with the ketuanan BULL, whlist your people starve you have your steaks and guccis,… hahah I laugh at these morons, how long can they lie to their own people without facing the consequences. for me I have given a pay increase to my staff the day the oil increase was announced without them even asking for it and they were shocked knowing the financial difficulties we are facing, I just told my staff, well it is my problem, you work hard for your money, if you are happy you work harder, today I had a delegation of staff who came to my office and told me the will only accept half of the pay increase and they have come up with ways of cutting costs and wastages, my staff are all multi racial.
Complain about this comment
Like or Dislike:
0 
0
Maggie, your query about Khazanah MD, “…in the first place, how did he get there?” Word got around certainly he isn’t the best of the best. Well, when there’s change of govt, he will be jobless.
Complain about this comment
Like or Dislike:
0 
0
Are back to the basics? It will be sinful to be seen to be driving gas (or petrol) guzzlers like Lamborghinis or Bentleys; carrying shopping bags out of the branded stores in Pavillion, (even more sinful if it’s a boutique owned by SIL).
Complain about this comment
Like or Dislike:
0 
0
ASk the ex-employees of TNB and perhaps the public will also know how many millions are being wasted in projects and ‘subsidies’, to donations to unnecessary organisations or projects.
Complain about this comment
Like or Dislike:
0 
0
TNB and che and the khazanah,
My old wounds bleeding again.
I thought i can closed one of my depression chapter cause by them but ………..its looks like a BIG NO.
Now the deppression of mine spreading to rest of Malaysian by this same people.
rajraman.maybe some readers wonder why i say this.one day the truth will prevail.cant do anything for this moment because the law is belong to correct2.Until then this chapter wont be close in my life.
Complain about this comment
Like or Dislike:
0 
0
“We are not taking money away from anybody but creating more value.”
Here, have some more cake.
Complain about this comment
Like or Dislike:
0 
0
Perhaps the pay increment for the CEO and CFO for selling land, power station and buildings which was previously owned by TNB.
After the general election, TNB was forced to employ a representative from a ruling federal political party at a salary of RM6,500 a mth. Only opposition ruled states has this Government Relations Officer (GRO) though. He doesn’t have any job description, doesn’t do anything or even appears in the office but we all know who he reports to.
What Augustine said is indeed the truth. Almost everyone in TNB and maybe out of TNB knows the amount of ‘leakages’ especially contracts through ‘middlemen’.
Complain about this comment
Like or Dislike:
0 
0
I think the timing of the increments and the quantum stink. There is no justification for a 100% increment especially since electricity tariffs have to be raised to fund it.
Complain about this comment
Like or Dislike:
0 
0
What’s the problem with 100% increase. 200% also can. Just increase the tariff and everything kowtim. Like Astro increase every subscriber by RM15 and overnight Astro makes RM30 million per month as there are 2 million subscribers. To justify increase DPM launches new satellite and say interruptions during bad weather will be a thing of the past. Today interruptions still continue and if you stay in Subang Jaya where lightning and thunder is the norm you can’t get to view Astro most of the time.
Malaysia Boleh (Naik dan Naik)
Complain about this comment
Like or Dislike:
0 
0
The majority of the public cannot make ends meet. Most of them, government servants, mostly earning RM1500 or even less. Infact, quite a large number now taking second jobs (like this man here)
http://thestar.com.my/news/story.asp?file=/2008/6/16/nation/21539084&sec=nation
By taking a second job, he is at a detriment as he spends less time with his immediate family. Worse still, previously, many hardly went back to the kampung to see Abah and Mak or Appa and Amma because of high toll rates, now, it is event worse, people don’t go at all because of the fuel hike by our oil producing country Government.
Pity the atuk and nenek in the Kampung. They now don’t see their children who work in KL. Pity the cucu and cicit, they don’t see or even know their atuk and nenek cause the parents cannot afford the fuel and toll.
All these social repercussion whilst a few boys get their billions and millions. And their wives shop in Harrods and Selfridges keeping up with the Joneses, comparing with each other who has better curtains…”Datin, my curtains are Laura Ashley”, “No, Puan Sri, my curtains are from Harrods,”
And the majority of the people crack their heads where to buy cheap rice in Malaysia (whilst Bernas makes over hundred million ringgit profit).
And hundreds of billions are potentially going to be spent for all the Corridors. No point having Iskandar Corridor and North Corridor etc when your Rakyat themselves trying to make end meet with food.
Complain about this comment
Like or Dislike:
0 
0
It is time for us rakyat to resolve our own woes and issues to help ourselves. Start looking at semi conversion to solar panels for homes. It may be a one time (higher)cost but will save over the years. Any of you guys out there with knowledge and expertise should start marketing this to households. With reduction in your electricity bills comes reduction in revenue for TNB and then let’s see what creative ideas they will have to justify their excesses.We need to get started on resolving our issues which will whack them! Astro – reduce/go minimum and save. How many channels you want to watch at one time la? Why do we need two TVs one for dad and one for kids?
Complain about this comment
Like or Dislike:
0 
0
http://www.malaysia-today.net/2008/content/view/8994/1/
Complain about this comment
Like or Dislike:
0 
0
Thank you for this post. I have been wondering myself why people have just ignored this situation. TNB has increased its tariff during a critical time, they are smart too they did it when the fuel price goes up. Malaysian all will just be focusing on fuel rather than the increase of the electricity price.
The thing that really annoys me is that everyone is having a go at Petronas instead of TNB. The fact is that Petronas is selling gas for electricity generation to TNB at a subsidised price (I think it is about RM 2 cheaper than the actual market price) and this is insane . TNB is making so much profits when it is suppose to be a GLC, what it should be doing is trying to help the people during these difficult time.
Complain about this comment
Like or Dislike:
0 
0
contrast this
http://www.malaysia-today.net/2008/content/view/8991/1/
Complain about this comment
Like or Dislike:
0 
0
Don’t blame the staff bro .. especially the ikan bilis. They are living dangerously with peanuts pay while the big guns (who were not even groomed by LLN/TNB) got the BIG chunk of the cake. Fair ? NOT!!
Complain about this comment
Like or Dislike:
0 
0