I have the following queries which need your assistance:
- Just to confirm the remuneration package include the salary, bonus and share option etc?
- How do I get the total amount of the remuneration for individual in the annual report?
- What is the guide/benchmark i.e. percentage of the CEO, director remuneration can i base on for verification whether are they overpaid?
- Do I work out the percentage of the remuneration against the net profit income or other?
Hi Ka Fatt,
- Yes, you are right
- For US companies, you can get it from their proxy statement (Form 14A) while Asian companies usually get it from the corporate governance segment or the foot notes.
- There is no benchmark for measuring compensation. The key is to look at the trend of the management salary whether it maintain the percentage. A bad sign is when the company profit decrease while salary goes up.
- I usually look at salary to net profit and salary to sales. Like I had mentioned above, it is to see whether the trend maintain. A good trend is when the management salary to net profit or sales is decreasing. This means that the profit is growing faster than their salary increment.
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