KUALA LUMPUR MAY 6: Malaysia no longer has all male board members in the top 100 listed companies since February 2019.
Minister of Finance, Lim Guan Eng said, this is due to the improvement in the gender diversity policy where 23.68% females become board members in 2018 compared to 16.6% in 2016.
Guan Eng said in January 2018, seven (7) out of 100 listed companies were with no women in their boards.
“We celebrate the progress achieved but we need to work towards the target of 30% women directors by end of 2020 and secondly champion diversity in leadership and management as in June 2018, women only accounted 28% of senior management positions in all Malaysian listed companies.
“Thirdly, we should promote and embrace the diversity in fuller sense and not look at just on gender diversity but also in terms of age and ethnicity,” he said in his speech at the Launch of Corporate Governance Monitor 2019 organised by the Securities Commission Malaysia (SC) here today.
Earlier in the speech, Guan Eng said, he commended the SC for their commitment and relentless efforts in promoting corporate governance in order to build an environment of trust, transparency and accountability in the capital market.
The Finance Minster also said although large companies are expected to implement the higher requirements in the Malaysian Code on Corporate Governance (MCCG), but it is noted that a number of small and mid-cap companies have done very well especially disclosing the remuneration of senior management which will help stakeholders evaluate pay and performance.
“I expect to see more companies in particular large companies adopting this practice this year,” he reiterated.
Guan Eng also referred to the CG Monitor’s thematic review on CEO remuneration based on data which shows that some companies have CEOs who are paid very high remuneration (17 times more that the median CEO pay highlighted in this report) despite these companies having reasonably average market capitalisation.
He also stressed that compensation of employees in Malaysia as a percentage of GDP stood at only 35.2% in 2017 whereas Singapore and South Korea are above 40%.
For such situation, Guan Eng said, corporate Malaysia needs to play its part to ensure that the workers earn a decent wage with good work environment.
“In this context, we look forward to the SC following up on its analysis of CEO remuneration with a review of key pay ratios and wage levels of employees in listed companies in the next year’s CG Monitor,” he said. –Malaysia World News