KUALA LUMPUR – CIMB Group Holdings Bhd chairman Datuk Seri Nazir Razak’s position will not be affected by a recent Bank Negara regulation where chief executives of banks must wait for a five-year cooling period before being appointed as chairman.
Nazir had resigned from his chief executive officer (CEO) position at CIMB effective Sept 1, 2014 before this new regulation was announced.
CIMB’s chief executive Tengku Datuk Seri Zafrul Aziz said that the ruling was not retrospective, and thus, Nazir’s position was not affected at the bank.
“Nazir was already chairman before the ruling.
It is for cases going forward, if a bank’s CEO wants to become chairman then it is not possible,” Tengku Zafrul told StarBiz.
Meanwhile, Tengku Zafrul said that CIMB had been practising a staggered bonus payment system to its employees, especially the senior ones, even before a Bank Negara regulation was recently announced.
“For most of the senior people, our bonuses are already staggered.
“The senior ones get their bonuses over five years, depending on the seniority and the type of job people are doing.
“It is the same for other banks as well,” he said.
Banks have been directed by a recent Bank Negara ruling to stagger the variable bonuses of senior employees and deal-makers over a period of time in a move seen as putting the brakes on bankers earning handsome rewards and leaving the bank to carry all the risk.
Tengku Zafrul said that the ruling now would require further disclosures from the bank and it would comply accordingly.
“The recent ruling will require us to disclose, so we will follow and disclose.
“We don’t have to disclose by name, but rather by division or by groups,” he said. – ANN