CIMB’s new compensation plan

Lower earnings: A CIMB Bank branch in Bayan Baru. CIMB reported a net profit of RM1.19bil for its financial year ended Dec 31,2020,74% lower than its net profit of RM4.56bil recorded a year earlier.

CIMB Group Holdings Bhd will embark on a group-wide long-term incentive plan (LTIP) – for the first time ever – which the bank says will enhance the accountability of its senior management in delivering the group’s strategy and targets.

The plan will see its key executives receiving their full bonuses or incentive payouts only in three to four years’ time from now, and not yearly as they normally do.