The Communication of Director's Remuneration

This study investigates the extent of Malaysian directors remuneration disclosure in the annual reports based on individual pay for each director, band of pay, linkage to performance, and components of pay. The annual reports of 376 companies listed on Bursa Malaysia are randomly selected and analysed. The results reveal that most of the sampled firms communicate information about the directors pay in bands of RM50,000, together with the narration of linkages between the directors pay and performance in their annual reports. However, not many companies disclose information about individual directors pay, or separately disclose the salary and bonus components.