KUALA LUMPUR: Genting Malaysia Bhd chairman and chief executive Tan Sri Lim Kok Thay, the highest paid CEO in the country, is taking a 20% pay cut, according to a report by China Press.
The group, which is facing higher gaming taxes, was reported to be working on various initiatives to reduce costs.
Lim announced his decision to take a smaller pay during the group’s AGM today, as shareholders applauded and cheered in response, China Press said. Lim, ranked the seventh richest Malaysia by Forbes, is estimated to have a net worth of US$3.9bil.
According to the 2019 Corporate Governance Monitor, issued by the Securities Commission, the top three companies with the highest paid CEOs were Genting Bhd , Genting Malaysia and Sapura Energy Bhd .
The report said the CEO of Genting Malaysia received a remuneration of RM80.6mil, while the CEO of Genting Bhd received RM168mil.
Genting Malaysia, last month, reported that in the first quarter ended March 31, net profit fell 26% to RM253.1mil. The group said it will continue to review capital expenditure requirements and rationalise operating cost structure to mitigate the impact of the hike in casino duties and the increasingly challenging operating environment.
In November last year, the government announced the increase in casino duties to 35% – up from 25% – on gross gaming revenue. It also raised the duties to 30% – up from 20% – on gross collection from gaming machines.
The Finance Ministry also increased the annual casino licence fees by RM30mil to RM150mil and yearly machine dealer's licence to RM50,000 from RM10,000. Analysts have forecasted that the earnings of Genting Bhd and Genting Malaysia Bhd would be impacted following the increase.