Saturday, October 20, 2012

GLC bosses' pay and the Poll


Sime to file appropriate action on bloggers?

Sime Darby is in the blogs again, this time over a proposed resolution for the coming AGM to approve share schemes for the employees and the bosses. 


1. GLC bosses and their pay: A rewarding election issue for the Opposition
My first thought when I read Big Dog's posting was: "Ah, and the PRU13 is just around the corner!" Because they are government-linked, as their name suggests, GLCs are a favorite punching bag of the Opposition. Especially so during election season. This one on Sime Darby is going to be a big and easy target for them in the run-up to the 13th General Election. 
Forget about the scheme being great for the 100,000 employees of Sime Darby. The Opposition doesn't care. Their focus will be on:  
The fact that Sime Darby wishes to reward a. its CEO and b. someone related to a Director  
The fact that the CEO has been around hardly long enough 
The fact that Sime Darby had just exited from a very rough patch that involved millions of RM in unexplained losses and alleged mismanagement.  
And the fact that those rough patches have resulted in at least a lawsuit filed by the former CEO against the Board of Directors, which is still on-going
Timing is everything. Just the other day, PAS' Mahfuz Omar raised hell in Parliament over Tabung Haji CEO Ismee Ismail's pay and perks. The guy's RM70k a month salary in 2011 has been raised to RM85k from this year. He's overpaid, Mahfuz said, comparing Tabung Haji's size to EPF's and Ismee's pay to EPF CEO's pay (RM50,000 a month). Read Mahfuz: Explain Tabung Haji CEO's pay packet. 
In the run-up to PRU12 in March 2008, the pay and perks of GLC bosses became an election issue to win a war of perception that Abdullah Badawi's regime was CEOs-friendly but did not really give two hoots about the general working population and, therefore, wasn't that people-friendly. We can expect more intensified attacks in the run up to PRU13.
2. Sime Darby's side of the story:
For Immediate Release Friday, 19 October 2012 
False and erroneous allegations made against the Chairman, Board of Directors and senior management of Sime Darby

Sime Darby is responding to certain allegations and accusations that have recently been posted on certain blogs with regard to a proposed long term incentive plan for eligible employees of the Group. The information contained in these blogs is wrong and thus the opinions posted are not founded on fact. The proposed performance-based employee share scheme is still subject to the approval of shareholders at general meeting.
The two blogs and the comments posted have caused embarrassment to the Chairman, Board of Directors and the senior management of Sime Darby. The company takes a serious view of these baseless accusations and the inferences therein and will take appropriate action to protect the reputation of the organization.
An official from Sime Darby has contacted one of the bloggers and informed him of his mistakes. Despite having notified him of his errors the previous day, he has yet to correct the offending post or remove it, which suggests that his intentions are malicious, vexatious and mischievous. The post has attracted undue attention and perpetuated his mistaken assumptions.
A summary of the erroneous statements and the actual facts is listed below: 
No.
Accusations
Actual Facts
1.
EGM on 8 Nov to approve a special ‘grant for selected employees’ – in the form of free sharesSime Darby Bhd will hold an EGM on 8 November 2012 to seek approval for the performance-based employee share scheme – a scheme that aims to drive long term sustainable performance of the Group as well as to attract, retain and motivate employees based on their performance and the fulfillment of certain performance conditions and targets. The fulfillment of these targets will enhance total shareholders’ returns and the overall performance of the company which will benefit all stakeholders.
2.
The reward is not to the 100,000 Sime Darby staff worldwide but only to two individuals.For employees working in Malaysia, executives of all grades including the executive director will be eligible to participate in the proposed scheme. For those employees based outside of Malaysia, executives of job grade VP II and above will be eligible to participate in the proposed scheme.
3.
Only two employees have been nominated for the scheme, Dato’ Bakke for 3 million shares and Nur Tania Yusof for 200,000 sharesUnder the listing requirements, separate resolutions are required to be passed by shareholders to approve the grants of shares to Dato’ Bakke as the executive Director and Nur Tania being a person connected to a Director of Sime Darby Berhad. However all executives of VP II and above are eligible to participate in the scheme. It is wrong to suggest that these two individuals are the only two who will benefit from the proposed scheme.
4.
The practise of giving away ‘free shares’ is very oddSime Darby is not the first organization in Malaysia to implement such a performance-based share scheme. Other companies like Axiata, Bursa Malaysia and Maybank have implemented similar schemes earlier.
5.
Why is Sime Darby’s Board of Directors at liberty to determine which senior management or employees are entitled for these ‘free shares’ at a time when the public is demanding for greater accountability?The scheme envisages the establishment of a Board committee to implement and administer the proposed scheme. This is standard practice in all organisations. It would be ludicrous to expect external parties to determine performance and rewards.


Other facts
·        In the case of the President and Chief Executive, the proposed performance-based employee share scheme allows for the granting of a maximum of 3 million shares over the 10-year scheme period. This number of shares will be vested on a staggered basis and only in the event of exceptional performance both at individual and enterprise level for the 10 years and subject to fulfillment of stringent performance-based conditions. The shares will only be vested in the grantee three years after the grant, subject to vesting conditions. These criteria will apply to all eligible grantees.
·        The Board has built in safeguards into the process that will ensure that the interests of the company and its shareholders are at all times safeguarded.
The blogs posted on the performance-based employee share scheme are misinformed and reflect the lack of appreciation and understanding of industry practices on performance-based reward schemes. 


3. Click on the links to read the offending postings. 
a. SANTA MUSA IS COMING TO TOWN by Big Dog 
b. WHAT IS SANTA MUSA UP TO?  by A Voice

Big Dog has carried a link to Sime Darby's clarification and I believe A Voice is also giving Sime Darby the right to a reply. That's the appropriate thing to do. 

Since 2006, the year of the "world's biggers plantation companies' merger" that gave birth to Sime Darby, the two bloggers have been blogging religiously about the transnational corporation. Their records speak for themselves. 

20 comments:

Anonymous said...

Rocky, are Bigdog and Voices secret supporters of Pakatan rakyat? Why do they expose incorrect things about the GLCs at this time - the PRU13 is so close. The Pakatan have paid money to hire cybertroopers and Bloggers. The PM has warned about traitors in UMNO. Keep a close eye. We do not know who are traitors.

Duitsen said...

I can assure the GLC CEO / MD pay in Malaysia is overpaid in what ever case. Why you may ask. The answer Risk Reward + National Service + mainly minimum type industry operation Oligopoly companies. As most entities have Zero risk which mainly is backed by the government there is no risk to the ultimate destruction of the company. Its not like a fully competitive company like where every decision will have impact whether +ve or not they have no avenue for the G bailout. Like the US / UK when the key company with public money interest(not any company)went under and bailout by the G was done the CEO were paid paltry compared to industry average. The CEO took helm of the company took pride in managing the company as national service with low pay. You can see this also that all western countries when there is govt involvement in the shares the pay is low. Here it is otherwise in fact most of them are in the list of highly paid executives. And take notice that the pay gap from management to CEO is so excessively huge that it not fairly distributed. There is an argument that these people are good or highly qualified. This is a false. A highly qualified person is by definition is qualification experience. Do not say that you have been a Executive Branch of MNC here as highly qualified. A highly qualified person is an Executive of the international Operation of the company at the world operation. Not a jaguh kampong executive in Malaysia regardless it is MNC or not. If I can recall there is no such CEO of that record. Any jock with good education and connection can do that.

Anonymous said...

Who cares what. Idiotic bloggers write about , when their journalistic credentials are about zero.

Sensationalism is all they are good at besides trying to impress their audience with their English hoobaloo.

And that includes You who refer to other bloggers to add garbage to the whole system.

How low can you get?

Anonymous said...

Rocky the Saboteur!!

UMNO Beware of these Moles who Claim they are UMNO's Moles!

Moles knows no loyalty. Their loyalty is only for the highest bidder and Rocky' Gang are not happy Najib is paying others to do nothing instead of money going to them!!!

Anonymous said...

u help me-- i help you-- its all taxpayers money --lah,, how funny-- 1 fuuny malaysia

Anonymous said...

Rockybru, AVoice,and Anjing Besar....semuanya Jealous !!

Apa, si botak mukhriz tak naik gaji kau orang ke ???

Anonymous said...

DEAR STUPID ANON 2:19PM.
PLS DON"T PROVOKE AND INSTIGATE BY TRYING TO IMPLY THAT BIGDOG AND AVOICES ARE PART OF PR.

THEY ARE NOT, BUT I THINK YOU ARE. MARK OF ANUWAR CYBER TROOPER. EITHER THAT OR YOU ARE THE COFFEE BOY AND DARLING OF THOSE STUPID CEOs OF KHAZANAH.

Radha said...

anon@4:10PM,

you are right on one count - anon 2:19PM is a GLC machai.
Don't think he is a pakatan cyber trooper. definitely an Umno bangsat.
One thing this machai scared shit of the likes of Rocky Bru, BigDog and Voice..

Or Kalimula's machai.

Sime Gal said...

why do you think that postings on Sime Darby is sabotaging the BN.

let me tell you something -- outsiders don't need to sabotage the BN or Umno. We have seen how good they are at doing it to themselves.

If it is true that Sime Darby is going to make that kind of payment to these two guys -- hey...that's terrible.

Look...i don't want to ungkit ungkit at how theatrical and farcical the merger of Synergy Drive under sleeping Pak Lah's admin...ok..still want to take peole for a ride (if that is true you want to play with the books)..we all know Sime at that time was making losses. Golden Hope was the golden goose.
Synergy Drive? BAH! back to Sime Darby, kan?

ok. enuf already.

Now...whoever is crying "sabo" becos of the postings -- let me say you are typical spoilt yang memalukan dan sebab nya BN kalah manusia.

If it's not true, then good-lah tak betul.

apasal nak marah ni?

Anonymous said...

go to Hell all the FUCQUATE

Anonymous said...

Khazanah is doing a good job in stimulating the economy and creating jobs for Malays...

These Johorian Bloggers (Rocky's Johorian Gang)are only answerable to Muhyideen and will do anything to put Najib down!!

Watch them closely for they only have Muhyideen's hidden agenda in mind!


NajibSupporter

Anonymous said...

never hear them say good things

its all about condemn condemn condemn even good things

to fish votes for themselves

never also hear and see them serving the rakyat, us all.

its about sabotaging ie supply of water

Mazlan said...

Haha, Big Dog and the Voice are full on UMNO supporters so no doubt where they stand. It's just they know this sort of scheme in the GLCs play into the hands of PR.
Nur Tania is a daughter of one of the BOD...... So why the hell should she be rewarded. It's outrageous that the BoD can make their kids rich just at drop of a hat.
And you wonder why the Gomen and GLCS piss off the public......

Anonymous said...

The poor kampung malays are really the ones paying this guy's shameful salary.

Hantu Giji Jarang.



Anonymous said...

Fact is the statement of clarification by Sime Darby did not deny the fact raised by blogger Big Dog. It only outlines the scheme which is offered to all employees/management.

Anonymous said...

I don't think Rocky and Co have anything against Najib.

The theory of Muhyiddin having a say must come from the overzealousness of his own people who "engage" with the bloggers.

I hear that his press sec is also a frequent fixture at NST's newsroom. Tell her to stop it because it is bad for NST and journalism.

Many are grumbling that she has access, especially to some editors, who may have to oblige as she represents the DPM's office.

It also creates disharmony as some close to her use her to get what they want..


-Perakian-

bru said...

Perakian,

I attended Datuk A Kadir Jasin's "wacana" organised by the Malaysian Press Institute in Damansara last week. He was talking about "the most powerful DPM" Malaysia ever had, and it was Anwar Ibrahim! Anwar had two press secretaries then and we in the Press always complained about them. I know both well as they were my ex colleagues from Business Times.

Musa Hitam was also a powerful Deputy PM back then. Musa also had a press secretary that was not popular with everyone, but that was a little before my time. I can't seem to remember who the late Tun Ghafar Baba's press secretary was when he was DPM, before Anwar uncremeniously outed him.

The nature of Press Secretaries' job, they have to stay close to the Press. Their job is more challenging today as there's the new media to contend with, too. An effective press secretary is not one who knows many editors or journalists but rather one who is known to editors and journalists.

Mat Cendana said...

Datuk E. Sreesanthan, who is being charged with insider trading, has offered himself to be re-elected as a director of Sime Darby at its AGM on 8 November....

He has been on a leave of absence since July after being charged and, I presume, has not been taking part in meetings or contributing much (if anything) to Sime's business activities. And this will remain so until the case is resolved.

So what use is he to Sime? Why should he still be paid director's fees when he is merely a `biawak hidup' which Sime has to carry?? If he gets re-elected, that means something is seriously wrong with Sime. This is the time for the major shareholders to put their feet down and vote him out if it is really serious in "corporate governance".

By the way, korang jangan la dok kacau sangat Sime. Aku ada beli dia punya share. Or at least the poor man's version - its Sime-CR call warrants. 0.04 (four sen) per unit now; exercise price 9.50; ratio 8:1 (so cost is 0.04 x 8 = 32 sen). At 9.82, I'll break even - more than that, then it will be a very happy 2013.

Musa Hitam and its current directors have to do and be much better, not treat Sime Darby like a government ministry. If there's the perception that Sime will be better-managed, its share price will go up. If Musa and those loafers need to be pastured, then do it.

Minority shareholders are essentially powerless in a huge company like this - we'll never have enough votes to push through anything even if we are 100% united. Therefore, EPF and the major shareholders must be more responsible and committed to the minorities by demanding more for their money. Transform Sime into the real giant that it can be!

Anonymous said...

we in sime kerja setengah mati jaga ladang da kebun..bikin untung, gaduh sana sini mau dapat target...x dpt target kena sembur boss..maybe the second toughest plantation industry after ioi.

u org bising pasai apa..aku nak shre tu.
...kami kerja siang malam.jaga kilang u org apa tau...

Anonymous said...

Yes Anonymous.. you are correct.. dia orang kat luar sime darby jealous .. pasal diaorang tak dapat.. itu yang sibuk sangat cari pasal.., Sime Darby paling banyak bagi dividen dalam ASB.. so you yg kat luar Sime Darby tu melaburlah kat ASB .. untung dpt. So shut up!