Horizon.my

As an investor, you want to make sure that your company is not paying obscene salaries to the top execs. We’ve seen what happened at the US investment banks such as Lehmans and Merrill Lynch. Since I’ve got some bank shares, I was a little curious about what our top banking executives earn here in Malaysia. So here’s a list which I thought I’d share with you.

Malayan Banking (MAYBANK)
Shareholders Funds RM19.3 billion & Net Profit of RM2.9 billion, FY ending 30-Jun-08
- Top Earning Director: RM2.7 million
- 2nd Earning Director: RM1.3 million

Bumiputra-Commerce (COMMERZ)
Shareholders Funds RM15.2 billion & Net Profit of RM2.8 billion, FY ending 31-Dec-07
- Dato Nazir Razak: RM9.3 million
- Dato Mohd Shukri: RM1.1 million
- Dato Robert Chelm: RM1.7 million

Public Bank (PBBANK)
Shareholders Funds RM9.3 billion & Net Profit of RM2.1 billion, FY ending 31-Dec-07
- Dato Tay Ah Lek: RM6.5 million
- Dato Lee Kong Lam: RM4.8 million
- Tan Sri Teh Hong Piow: RM6.0 million

RHB Capital (RHBCAP)
Shareholders Funds RM7.0 billion & Net Profit of RM713 million, FY ending 31-Dec-07
- Managing Director: RM3.6 million

AMMB Holdings (AMMB)
Shareholders Funds RM7.1 billion & Net Profit of RM669 million, FY ending 31-Mar-08
- Top Earning Director: RM3.5 million
- 2nd Earning Director: RM2.5 million

Hong Leong Bank (HLBANK)
Shareholders Funds RM5.1 billion & Net Profit of RM742 million, FY ending 30-Jun-08
- Total Director remuneration of RM4.4 million (individual earnings undisclosed)

There is an article in TheStar today saying AMMB is planning 10 new branches in Malaysia this year. This will clearly make it the fourth largest bank in Malaysia in terms of branch network. I suspect AMMB is using its strong retained earnings position to fund growth in its retail business, a far-sighted move that will build its position in the Malaysia market, most probably at the expense of the other smaller players. What better time to expand than in an economic slowdown!