This article by Kasturi Nathan and Krishman Varges focuses on approaches that can be tied to the aspect of sustainability with an emphasis on business resilience, reducing excessive risk taking and reinforcing non-financial measure
An analysis by KPMG was also highlighted in the article. It revealed that variable components form almost 30% of a CEO’s remuneration package across the top 100 Malaysian public-listed companies and this average figure can reach up to 43% in the context of financial institutions with a fairly sizeable proportion of the variable components taking the form of deferred payments. From the analysis, it is also noted that the extent of variability and deferral in the remuneration schemes increases as one moves up the management echelon.
In the article, it is suggested that companies should approach the downturn with a calibrated and flexible approach to managing change in line with its value creation strategy and should remain focused on the underlying philosophy with the adoption of a long-term view.
This news was also published in The Star Online