A proposed salary increase for two of TNB’s top executives has drawn a huge uproar and criticism among Malaysians.
However, the main issue is not the announcement, but rather the rate of the pay hike and the timing of the decision. The government’s main investment wing, Khazanah Nasional Berhad last week tabled a proposal to increase the salary of the CEO of Tenaga Nasional Berhad (TNB), Datuk Seri Che Khalib Mohamad Noh by 100%, which means the salary will be doubled. Apart from Che Khalib, the utility company’s CFO, Datuk Izzadin Idris will also be getting the same rate of salary increase.
It was announced by Khazanah’s Managing Director, Tan Sri Azman Mokhtar.
The timing also could not have come at a worse time, with the country now facing an economic downturn and uncertainties after the recent price hikes of petrol and household goods. Questions are also looming over the fate of other 28,000 long serving TNB staff, who are said to be subject to limited pay increase.
TNB’s annual report revealed that Che Khalib’s total remuneration for the year 2007 was RM1.1 million, out of which RM600,000 was his annual salary. On average, he received a staggering RM92,000 per month. The RM1.1 million amount will be able to pay approximately 60 junior executives earning about RM1,500 for a one year period.
Tenaga Nasional Berhad (TNB) is presently the largest power and utility company in Southeast Asia, and is the only energy company from Malaysia to be ranked among Top 50 Energy Companies in Asia in 2006.