TNB CEO’s monthly pay = 5 yrs’ pay for poor households

23
2035

Do you know that 24 per cent of Malaysian households are struggling to make ends meet, earning less than RM1,500 a month? The figure would be higher if you define “low income” as households with a monthly income of below RM2,000. Check out this report in NST:

THE country’s poverty rate will increase from 3.7 per cent to 24.3 per cent if the poverty line is raised from the current RM800 to RM1,500 per household.

Minister in the Prime Minister’s Department Tan Sri Amirsham A. Aziz said the definition of the poverty line was a household income sufficient for basic necessities. It does not include luxury items.

The basics are food, clothes and other expenses like rental, utilities, transport and communication, health, education and recreation.

“In short, the poverty line provides no room for luxuries like sending children to private schools or tuition classes, receiving treatment from private clinics or having their meals outside,” Amirsham said in reply to a question by Tan Sri Abdul Khalid Ibrahim (PKR-Bandar Tun Razak).

However, the poverty line would be updated from time to time, taking into account the prevailing inflation rate.

The government had redefined the low-income group as people earning less than RM2,000 a month.

These are the households that are feeling the brunt of oil price and electricity tariff hikes.

Contrast their household income with the remuneration of the Tenaga Nasional Bhd CEO, who earns over RM1 million per year:

Basic salary RM600,000

Bonus RM302,000

EPF contribution RM113,280

Car allowance RM42,000

Flexible benefits RM50,000

Total RM1,107,280

Figures are from TNB’s 2007 Annual Report.

That translates to RM92,273/month for running what essentially amounts to a monopolistic service. Has he succeeded in renegotiating the Power Purchase Agreements with the IPPs? Tenaga is bleeding from these PPAs, under which it has to pay the IPPs ‘capacity payments’ for electricity it doesn’t really need.

Anyway, you can see that the TNB CEO earns in one month what 24 per cent of households in Malaysia earn in five years – which includes those households with both parents working.

If you think his salary is staggering, check out how much the directors of YTL Group are paid. According to YTL’s 2007 Annual Report, the group has half a dozen executive directors earning total income of more than RM1 million a year, with the highest earning close to RM3 million.

So it’s not surprising that Malaysia has one of the highest income disparities in the region.

Enjoy your electricity tariff hike!

READ MORE:  Why the minimum wage should be RM1,800 today - not RM1,100
Please help to support this blog if you can.

Read the commenting guidlelines for this blog.

23
Join the conversation

avatar
2000
22 Comment threads
1 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
21 Comment authors
ahmad mohdpassion1karmaYangJ.Nathan Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
ahmad mohd
Guest
ahmad mohd

LLN was run by people who were mostly paid less than RM2000 a month. LLN was privatized so that it could be milked…. TNB’s pay package to its staffs is not sustainanble…. Already extra taxes are being mooted as PETRONAS revenue has already been factored out to cover all the …. holes dug by Mahathir. The electricity tariff in Malaysia on the average is higher than that which is prevalent in countries without oil fields. This is the fate of a country that is being run on the principle of racism. For 1 century they were people who built the… Read more »

passion1
Guest
passion1

Dear Anil,
The rural Malays, like the Felda Peneroka and orang Ulu need to be made to understand that these are the reasons the people are so poor of. They need to change their destiny, by voting BN out, for a change.

karma
Guest
karma

And THB is in debt, always. Their debts run into billions. TNB is also wasting money on a university it runs that makes no profit. Does TNB need a non-profit making university when there are already hundreds of colleges and universities in the country? TNB needs real corporate man to run it. All subsidaries that are not making money should be cut off. Let them stand on their own. Imagine, TNB having a university that is forever not making money and yet allowed to go on. This is ‘stupid’ management of people’s money. TNB is also paying fat salaries, bonuses… Read more »

J.Nathan
Guest

Now with Che Kahib voted CEO of the year, expect his salary to be doubled 100% again.. IMO GLC CEOS should be barred from competing…

sabahan
Guest
sabahan

This is only a tip of iceberg. You can imagine how many GLC with this highly pay non-productive CEO and those CEO with cronies private company especially those blood sucking contractor. Our standard of living should not be like now. We should be well ahead of others developing country.

All of us please guess how long the peoples monies can withstand all these abuses and digging?

… STOP THEM BEFORE IT IS TOO LATE.

sabahan
Guest
sabahan

This is only a tip of iceberg. You can imagine how many GLC with this highly pay non-productive CEO and those CEO with cronies private company especially those blood sucking contractor. Our standard of living should not be like now. We should be well ahead of others developing country.

All of us please guess how long the peoples monies can withstand all these abuses and digging?

…STOP THEM BEFORE IT IS TOO LATE.

Malaysian
Guest
Malaysian

The first thing this CEO should do is make sure the electricity bills decrease to an affordable range that is won’t burden rakyat.
My monthly water bill is RM20+, electricity bill is RM150?!!

Opposition party should look into this matter!

Especially the oil price dropped so much.

Do he deserve that pay? Hell no!

bow
Guest
bow

Anil, while UN reported Malaysia economy policy is well formulated and able to lower poverty rate among Malaysians from 42 % to 3% within 20 years, it was hailed as a very successful economy policy but UN does not know that umno’s BN managed to reach such a colorful goal due to the fact they are lowering the poverty line further down in their analysis which is no where near international standard for defining poverty.

malaysian
Guest
malaysian

anil, get your eyes wide open first. yeah it’s true that tnb ceo’s salary is 1mil anually, but 1mil is totally underpaid when you compare with other glc ceos. hey cimb ceo made way even more than that, around 19mil annually.. and as the agreement with ipp, he’s fighting, with both of his hand tied.. get the clue? hey please dont simply condemn others blindly, how about get yourself a bigger spectacles?

Concerned
Guest
Concerned

Dear Anil, Re-visiting your article. How about an article or some figures on salaries and perks of Malaysian Ministers, Deputy Ministers, Chief Ministers, Members of Parliament, State Assemblymen, and Executive Councillors? In addition, how about a poll on what the rakyat think for each category – (1) are they too highly paid? (2) should they take a pay-cut and what percentage? (3) how much do the paymasters (rakyat) want to pay them (citing salary scales like say RM1000 – 2000, 2000 – 3000, and so on; or a pay-scale like the civil servants depending on academic qualifications and experience)? Can… Read more »

Ignaoramus
Guest
Ignaoramus

Rob the poor to feed the RICH. that is MALAYSIA INC. a total cock-eyed approach on wealth distribution. I don’t think even the Sultans are being paid this amount. ALL GOD’S FREE GIFt TO MAN SHOULD BE GIVEN tO MAN AT A MINIMUM COST.ie water, electricity and basic food.(rice) PrivAtisation by the Mahathir era has made a selected sector VERY RICH…and robbing the average and poor to feed the rich is privatisation.. THERE SHOULD NOT BE ANY WATER PRIVATISATION, OR ELECTRICITY PRIVATISATION..THESE ESSENTIAL NEEDS SHOULD BE CONTROLLED AND GIVEN TO THE RAKYAT AT MINIMAL COST. The GOVERNMENT SHOULD SEE TO… Read more »

Son of Malaysia
Guest
Son of Malaysia

I’ve a question regarding the salary. Is it normal for CEO salary to be that high? Could you provide us other CEO salary? This would allow us to compare the pay to others.

Yang
Guest
Yang

How about that, Genting Lim Kok Thay earns 86.5 million in 2007. It did not includes other benefits and allowance which may also come to millions.. IOI chairman, 45 millions, CIMB Nazir 10 millions, just a few example…

artic turban
Guest
artic turban

ask the ceo of tenaga what is their budget for corporate gifts for ramadhan, which start from the (royalty) TO PM, MINISTERS, TO MINISTERS ETC , i tendered one particular year and the budget 4 years was more than rm 100k, this did not include the money spent on staff buka puasas everyday etc. it runs into millions. productivity during ramadhan also is rather low, go check it out, power failures and cabal breakdown during other months, this applies over the board to all govt depts, productivity drop in quality is in the tens of millions, well this is the… Read more »

Andrew
Guest
Andrew

Tell you what, I’ll pay you to eat the cake.

TNB Man
Guest
TNB Man

BTW, the latest fiasco these idiots have done was to sent their emergency team to built a fast tract transmission towers in Sabah to replace a fallen tower due to scrap metal thieves…

Tenaga talk so big about their emergency response team, and while they were stringing their emergency tower, this tower collapse and killed one worker, horrendously injured another four.

The losses of this fiasco was around 2 million, plus 5 broken lives..

so much for TNB’s expertise….

No wonder, more blackouts will be coming..

TNB Man
Guest
TNB Man

Dear Anil, We all know the performance of this guy.. just another Malay accountant… no specialist knowledge anyway… But very good in making decorations in TMB. You know why TNB staff are not performing? Not their fault really becos they are too busy carrying out the decoration orders by this CEO, who had now new ideas to improve TNB. Even its subsidiary SESB of Sabah is well know for SABAH ENJOYS SPECIAL BLACKOUTs These are the things introduced by CEO Che khalib…. 1. AKP- anugerah kuality president… what quality? electricity production and distribution and collecting bill payments no different from… Read more »

PlainTruth
Guest
PlainTruth

The directors of YTL deserve their pay and the gratitute of their shareholders who have reaped the rewards of the ability of the YTL management to negotiate a contract that requires TNB to buy whatever YTL Power generates (the electricity side, I mean) even if TNB does not need it. If the TNB CEO has the ability to enhance TNB financial performance by negotiating away that segment of the contract instead of achieving it via a tariff increase, then of course, he is worth every single sen of the million ringgit remuneration that he is paid, not withstanding the fact… Read more »

2nd class malaysian
Guest
2nd class malaysian

How can you compare the TNB CEO pay with those poor people. Donald trump monthly salary will be salary of 5 entire generation of some poor family. You certainly do not pay those poor people’s pay to ask him to manage TNB. Stupid! If he brings in profit and value to the company than pay him. I don’t mind pay him 200% or 300% but all the other employees of the companied should also be rewarded. The poor family have no value even if you pay them the CEO pay, they do not worth it. If they are worth only… Read more »

donplaypuks
Guest

Dear Anil, Can’t agree with you in comparing Executive Compensation Package with middle and low income groups’ remuneration. Tenaga is a big player and one of the largest capped stocks quoted on the KLSE. CEO’s of at least 1/2 of all Plcs here draw million $ packages, the highest being Genting I think at $40 million, Berjay Group $ 9 million etc. EPF is 12% for all so this is a red herring. But you forgot 1 key element i.e. stock options. We should compare exec pay packages with their peers here and abroad and then judge whether they are… Read more »

daniel
Guest
daniel

in a free market i dont question any ceo’s pay package if that’s what the shareholders are willing to pay…
in a glc however…your revelation is outrageous!! tnb is no-brainer business. no competition, nothing. so what on earth justify that obscenely fat package? they think they’re jack welch or something??!!

i mean, how, for example, these g**** can make more than, say, our PM (by that i mean official remunerations lah, if you know what i mean…)?

malaysia, indeed, boleh!!

amoker
Guest

Yeah man. What is so hard managing a monopoly where the only way of making more money is not being more efficient but raising the tariff. So, i guess he deserves his promotion for getting the tariff approved.

caravaserai
Guest
caravaserai

In no time many will live below the poverty line It is really sad that the BN government has myopic view Of the people needs and welfare The country has oil wealth It has gone to wasteful projects and bailouts Rendering the lives of the people Struggling always to meet their living expenses Here we have the BN leaders Issuing economic statements They don’t address the nation woes By them from them hiding from the people The utility companies shouldn’t be privatized Look what happens now……………… Benefiting the cronies Betraying the trust of the voters The utilities should be under… Read more »