UPDATED: Banks’ top execs see higher pay in FY20

Three CEOs received pay rises of over 10% in FY20 as their banks reported lower overheads after various cost-cutting measures


TOP bankers’ pay showed a significant rise during 2020, despite most banks reporting lower earnings during the year, after soaking up pre-emptive provisioning against Covid-19 risks.

Despite the provisions, at least three CEOs received pay rises of over 10% in financial year 2020 (FY20) as their banks reported lower overheads after various cost-cutting measures, according to publicly available records.

Malayan Banking Bhd (Maybank) president and CEO Datuk Abdul Farid Alias (picture) took home RM9.4 million in remuneration at the group level for FY20, up by 10.2% compared to RM8.43 million in FY19, according to the company’s latest annual report.

This included salary and other emoluments amounting to RM8.36 million and benefits-in-kind worth RM75,000.

The report also showed former Maybank chairman Datuk Mohaiyani Shamsudin being entitled to RM1.95 million in total remuneration, up to her retirement on Nov 1 last year, following nine years of service on the group’s board.

The amount included directors’ fees amounting to RM903,000, RM578,000 in emoluments and RM109,000 in benefits-in-kind.

Mohaiyani was replaced by Tan Sri Zamzamzairani Mohd Isa, who was appointed as chairman on Nov 2. Zamzamzairani previously served in Telekom Malaysia Bhd, Malaysia Airlines Bhd and Malaysian Aviation Group Bhd.

His remuneration as Maybank chairman for FY20 amounted to RM221,000.

AMMB Holdings Bhd CEO Datuk Sulaiman Mohd Tahir also saw higher pay in FY20, taking home RM6.64 million compared to RM4.2 million in FY19 — an increase of 58%. Note that the group’s financial year ends on March 31. His salary is for the period between April 2019 until March 31, 2020 and not in the full pandemic year.

The package included RM2.54 million in salary and bonus of RM3.14 million.

AMMB’s chairman Tan Sri Azman Hashim received RM1.71 million in remuneration for FY20, which included directors’ fees worth RM210,000, other emoluments amounting to RM1.47 million and RM26,000 in benefits-in-kind.

Depending on the company, benefits-in-kind could include a driver, golf club membership subscription, travelling expenses, handphone purchases and payment of utility bills.

Hong Leong Bank Bhd’s group MD and CEO Domenic Fuda (picture) also saw an 11.7% increase in remuneration for FY20 to RM17.13 million compared to RM15.34 million in FY19. The amount consisted of salaries, bonuses, allowances and a defined contribution retirement plan of RM10.26 million and RM6.87 million in benefits-in-kind.

Hong Leong’s financial year ends on June 30.

Meanwhile, CIMB Group Holdings Bhd’s group CEO and MD Datuk Abdul Rahman Ahmad, who was appointed to the post following Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz’s resignation on March 9, 2020, took home RM2.41 million in FY20.

The package included fixed and non-deferred remuneration amounting to RM2.2 million, deferred shares worth RM203,000 and RM4,000 in benefits-in-kind.

Abdul Rahman’s appointment took effect on June 10, 2020.

His predecessor, Tengku Zafrul, also received remuneration amounting to RM592,000 for FY20. Tengku Zafrul, who is currently finance minister, took home RM8.53 million in remuneration for FY19.

CIMB chairman Datuk Mohd Nasir Ahmad received RM1.51 million in remuneration for FY20, a 2.7% increase compared to the RM1.47 million he received in FY19.

The amount consisted of RM348,000 in directors’ fees, a chairperson’s premium of RM648,000, RM482,000 in meeting allowances and RM35,000 in benefits-in-kind.

Alliance Bank Malaysia Bhd’s CEO Joel Kornreich (picture), however, saw an 11.5% decline in his remuneration package at the group level for FY20 to RM9.5 million from RM10.6 million in FY19.

The figure consisted of a slightly higher salary and remuneration of RM6.41 million, but a 44% bonus cut to RM1.77 million from RM3.17 million in FY19, lower Employees Provident Fund contribution amounting to RM1.16 million and benefits-in-kind of RM150,000.


Ed’s note: The article on para 9 has been edited to reflect better accuracy

Read our previous report here

Obvious cuts in directors’ remuneration in 2019