As the group copes with a hike in gaming taxes, Genting Malaysia Bhd chairman and chief executive Tan Sri Lim Kok Thay has taken a 20% voluntary pay cut.
According to China Press, Lim announced the decision during the group’s AGM yesterday, as shareholders applauded and cheered in response.
According to Genting Malaysia’s 2018 Corporate Governance Report, Lim’s salaries and bonuses amounted to RM50.18mil.
A 20% pay cut from this would amount to about RM10mil.
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 forecast that the earnings of Genting and Genting Malaysia would be impacted following the increase.
Genting Malaysia has reportedly been working on a number of initiatives to reduce cost as the group deals with the higher taxes.
Its cost-rationalisation initiatives include reducing headcount, according to analyst reports.
According to the 2019 Corporate Governance Monitor issued by the Securities Commission, the top-three companies with the highest-paid CEOs were Genting, Genting Malaysia and Sapura Energy Bhd.
Lim is the CEO of both Genting and Genting Malaysia.
According to the report, the CEO of Genting Malaysia received a remuneration of RM80.6mil, while the CEO of Genting received RM168mil.
Genting Malaysia’s shares were up three sen to close at RM3.34 yesterday, while Genting ended eight sen higher at RM6.68.