CG part 3

Why should companies disclose executive remuneration details?

• To comply with corporate governance regulations

• To increase CEO influence

• To reduce shareholder engagement

• To prevent financial reporting

A board wants to ensure fair director pay. What should they do?

• Conduct regular external benchmarking studies

• Allow directors to decide their own salaries

• Ignore industry trends

• Reduce all performance-based incentives

How can a company prevent excessive executive bonuses?

• Set clear performance metrics and shareholder approval mechanisms

• Remove all stock options

• Allow executives to determine their bonuses

• Reduce financial disclosures

What is a common criticism of CEO compensation packages?

• They are often excessive and not always linked to performance

• They are always too low

• They never include stock options

• They do not affect corporate governance

Why do companies include clawback provisions in executive contracts?

• To reclaim bonuses if financial misconduct occurs

• To increase CEO authority

• To reduce board independence

• To avoid corporate social responsibility

What principle should guide a board in setting executive pay?

• Fairness, transparency, and performance alignment

• Maximizing CEO salary without conditions

• Reducing shareholder influence

• Limiting executive responsibilities

What is corporate governance according to the Malaysian Code on Corporate Governance (MCCG) 2012?

• A system focusing only on financial performance

• A framework for managing business and enhancing accountability

• A set of tax regulations for corporations

• A method to reduce board independence

What was the main reason for strengthening corporate governance in Malaysia?

• The 1997 Asian Financial Crisis

• The 2008 Global Financial Crisis

• The 2012 European Debt Crisis

• The rise of Fintech companies

What is the role of Bursa Malaysia in corporate governance?

• Regulating and enforcing listing requirements

• Approving all company mergers

• Controlling financial transactions

• Managing government tax policies

Which governing body oversees securities regulation in Malaysia?

• Malaysian Institute of Corporate Governance (MICG)

• Securities Commission (SC)

• Bursa Malaysia

• Ministry of Finance