malaysiakini has this interesting response to the minority shareholders defending the attractive pay package of the CEO of Puncak Niaga - Puncak Niaga chief should be axed, not rewarded and this must be the first time in Malaysian history that a company that is not really making profits has the CEO getting the support of minority shareholders.
I attended the HSBC AGM in London last year and the CEO and other directors came under heavy criticism for the bank's money-laundrying charges in the USA.
Meanwhile, the wheeling and dealing goes on in Malaysia. The chart above is drawn from details of a story in the Star Business Section of 6th July 2013.
It seems that 1MBD has not been really prudent in the purchase of power producing plants. The chart shows the deals made in the past two years and the numbers are not very appealing.
If you study the numbers in the right column, you will note that Malaysian taxpayers paid almost 3 times for the Mastika deal in 2012 compared to the latest one Jimah that is almost finalised on "a willing seller, willing buyer" basis.
One only wonders if the buyer was "too willing" in the first 2 deals or is there a learning curve involved?
Of course the analysis is only dealing with the raw data. Other factors can be considered like:
1. How profitable are the companies?
2. How well maintained are the plants?
3. How obsolete are the plants?
4. What contracts do these plants have with the main purchasers?
Do you think the agreements are DEVIOUS or OK?
(note: price adjusted to reflect 100% ownership to enable comparisons)