Executive salaries & bonuses
This is an ongoing work on salaries and bonuses for Indonesian executives. Competitive enough to shopping frequently at the up-coming high-class Harrods store in Jakarta.
1) Arwin Rasjid, CEO of TELKOM: Net salary for 2006 = Rp108 million/month (USD12,000). Bonus for 2005 = Rp1.58 billion (US$176,000). Other members of BOD/BOC of Telkom get salary and bonus with the following formula: Deputy CEO = 95% of CEO, directors = 90%, president commissioner = 40%, other commissioners = 36%. You can calculate yourself of how much Mr Tanri Abeng (president commissioner) get or commissioners such as economist Arif Arryman.
2) Dwi Sutjipto, CEO of SEMEN GRESIK: Net salary : Rp95 million/mo (USD10,500) and bonus = Rp1.068 billion (USD118,000). Other members of BOD/BOC as follows: Deputy CEO = 100% of CEO, directors = 90%, president commissioner = 40%, deputy = 40%, and commissioners = 36%. Total management bonus = Rp14.31 billion (inc for subsidiaries).
3) Saiful Imam, CEO of ADHI KARYA: Net salary: Rp42 million/mo (USD4,600). Bonus = Rp220 million. Directors = 90% of CEO, president commissioner = 40%, commissioners = 36%. Total management bonus = Rp1.459 billion.
4) President commissioner INDOSAT : Rp1.7 billion (total package)/year; commissioners (average): Rp1.567 billion/year. Name of commissioners: Roes Aryawijaya (deputy minister of SOEs), Eva Riyanti Hutapea (former INDOFOOD CEO), Setyanto P. Santosa (former TELKOM CEO), and Soeprapto (former assistant to Army Chief of Staff).
5) Dedy Aditya Sumanagara: CEO of Aneka Tambang (ANTAM): Salary: Rp47 million/mo plus bonus (2005 FY) = Rp983 million (USD108,000). Formula of salary + bonus for BOD and BOC is similar to ADHI KARYA.
Remember that the actual amount of money these guys take home might well above that.
But the above list could answer my previous question of why Harrods eager to open its outlet in Jakarta while it failed in Singapore.
READ MORE!!!
1) Arwin Rasjid, CEO of TELKOM: Net salary for 2006 = Rp108 million/month (USD12,000). Bonus for 2005 = Rp1.58 billion (US$176,000). Other members of BOD/BOC of Telkom get salary and bonus with the following formula: Deputy CEO = 95% of CEO, directors = 90%, president commissioner = 40%, other commissioners = 36%. You can calculate yourself of how much Mr Tanri Abeng (president commissioner) get or commissioners such as economist Arif Arryman.
2) Dwi Sutjipto, CEO of SEMEN GRESIK: Net salary : Rp95 million/mo (USD10,500) and bonus = Rp1.068 billion (USD118,000). Other members of BOD/BOC as follows: Deputy CEO = 100% of CEO, directors = 90%, president commissioner = 40%, deputy = 40%, and commissioners = 36%. Total management bonus = Rp14.31 billion (inc for subsidiaries).
3) Saiful Imam, CEO of ADHI KARYA: Net salary: Rp42 million/mo (USD4,600). Bonus = Rp220 million. Directors = 90% of CEO, president commissioner = 40%, commissioners = 36%. Total management bonus = Rp1.459 billion.
4) President commissioner INDOSAT : Rp1.7 billion (total package)/year; commissioners (average): Rp1.567 billion/year. Name of commissioners: Roes Aryawijaya (deputy minister of SOEs), Eva Riyanti Hutapea (former INDOFOOD CEO), Setyanto P. Santosa (former TELKOM CEO), and Soeprapto (former assistant to Army Chief of Staff).
5) Dedy Aditya Sumanagara: CEO of Aneka Tambang (ANTAM): Salary: Rp47 million/mo plus bonus (2005 FY) = Rp983 million (USD108,000). Formula of salary + bonus for BOD and BOC is similar to ADHI KARYA.
Remember that the actual amount of money these guys take home might well above that.
But the above list could answer my previous question of why Harrods eager to open its outlet in Jakarta while it failed in Singapore.
READ MORE!!!
posted by yosef at 4:34 PM
4 Comments:
While these numbers look high by Indonesian public sector standards, they are extremely low by global standards. While there should be costs associated with failure to perform, equally running a large business is a complex process and to attract key professionals is not cheap. Earning Rp108m/month sounds extremely low for the President of Telkom.
It's partly true. Telkom is the largest company by market cap. Rp108m/mo is clearly low. Compare that with Gresik with market cap of 1/10 of Telkom. But there are benefits (i bet the amount is few times of salary) and not disclosed properly. I support better salary for SOE executives with condition that they have to disclose their wealths before and after their tenure. They should disclose the benefits properly as well plus stock options in a simple table.
Salary is just a part of an executive remuneration package. Not to mention other perks. Let me show you other figures from the biggest bank in Indonesia, that despite its lousy performance it still can manage to give away fat paychecks for its oversized executives.
In 2005, Bank Mandiri gave a total of 51.26 billion Rupiah for its 8-member executive board. That would give an average of 6.40 billion Rupiah a year or 533.99 million Rupiah a month for each of executive board. The total 51.26 billion Rupiah comprised of 15.38 billion Rupiah of salary, 16.14 billion Rupiah in facilities (company's perks) and 19.75 billion Rupiah for bonuses (despite a meager 600 billion Rupiah profit in 2005).
Meanwhile, Bank Mandiri's 7-member BOD (komisaris in Bahasa) pocketed 13.83 billion Rupiah in 2005. A very nice chunk if what you did so far was just sit and watched the CEO and his gangs wrecked havoc the Bank's balance sheet (It's the bad loan, in case you didn't know that).
Can anyone mention any other mischief here in Indonesia worth more than 500 million Rupiah a month?
For your record, a newly hired branch teller in Mandiri would take home her hard earned measly 1.8 million Rupiah as her monthly salary.
To fatten more their pockets, they commissioned a hanky panky suspiciously back-dated stock option plan (or play?).
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