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Compensation Management
Linda Pratiwi Darmadi –
19009035
• PER-07/MBU/2010 Year 2010 about
Income Guidelines for salary determination
of Directors, Board of Commissioners,
Board o...
Bank Mandiri (October 2, 1998)
• Part of a restructuring program implemented by the government of
Indonesia.
• In July 199...
The arrangement of compensation for CEO and others
BOD already based on PER-07/MBU/2010 Year 2010 as
these following some ...
• Decided income based on benchmark, the condition of
competition and the complexity of business also scarcity
of human re...
Every SOEs company should use this formula for calculating
salary and income for Board of Directors.
No
Bank’s
Name
Position
Base Salary/
Month
Take home pay/
Month
Information
1 Mandiri CEO 166.000.000 IDR Base salary not ...
3 BRI CEO
167.000.000
IDR
Not including benefits
BOD 333.000.000 IDR
Salaries and allowances for BOD Rp. 40.3
billion. So ...
• BRI’s CEO got the highest base salary.
• The second highest salary received by
executives in Mandiri Bank.
• Amount of b...
• Income based legal aspect from ministry
Regulation, general meeting of Shareholder
and also Bank Indonesia
• Reason of g...
• General meeting of shareholders decided executives’
salaries, salaries that given in the range that written in Ministry
...
• Gap of three Banks
Take home pay of executives in Mandiri bigger than BNI
and BRI. There probably some reason such:
Res...
Related to decided amount and form of compensation for
executives, there are some important points should be
considered:
•...
THANKYOU
Legal Aspect of Executive’s salary in Stated-Owned Enterprises Banks
Legal Aspect of Executive’s salary in Stated-Owned Enterprises Banks
Legal Aspect of Executive’s salary in Stated-Owned Enterprises Banks
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Legal Aspect of Executive’s salary in Stated-Owned Enterprises Banks

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Midtest Presentation of Compensation Management Course by Linda Pratiwi

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Transcript of "Legal Aspect of Executive’s salary in Stated-Owned Enterprises Banks"

  1. 1. Compensation Management Linda Pratiwi Darmadi – 19009035
  2. 2. • PER-07/MBU/2010 Year 2010 about Income Guidelines for salary determination of Directors, Board of Commissioners, Board of Supervisors and State Owned Enterprises ("SOEs Minister Regulation 7/2010) • General Meeting of Shareholders
  3. 3. Bank Mandiri (October 2, 1998) • Part of a restructuring program implemented by the government of Indonesia. • In July 1999, four state banks merged into Bank Mandiri. Bank BNI (1946) • The first bank was founded and owned by Indonesian Government. • It began to circulate the first official payment issued by the Government of Indonesia called ORI on October 30 1946 Bank BRI • Focuses on lending and banking services for micro, small, and medium enterprises (MSMEs). • One of Indonesia's top three lenders. • Pioneer in the field of micro loans, or small loans for encourage entrepreneurship.
  4. 4. The arrangement of compensation for CEO and others BOD already based on PER-07/MBU/2010 Year 2010 as these following some of clauses: • Income decided in General Meeting of Shareholders and by Minister. • The forms of income are salary, honorarium, facilities, allowances and bonus
  5. 5. • Decided income based on benchmark, the condition of competition and the complexity of business also scarcity of human resources. • Tax from benefits should be paid by company. • Income of executives should considered income, assets, condition of the company's financial ability, inflation rates and other relevant factors also not against the legislations.
  6. 6. Every SOEs company should use this formula for calculating salary and income for Board of Directors.
  7. 7. No Bank’s Name Position Base Salary/ Month Take home pay/ Month Information 1 Mandiri CEO 166.000.000 IDR Base salary not including benefits BOD 705.000.000 IDR Details of 11 BOD’s income during one year: Salaries Rp.27, 57 billion, allowance (THR, leave, medical and mobile) of Rp. 17, 51 billion and bonus of Rp. 48 billion. The amount is equivalent to Rp. 7 billion per year or Rp.705 million per month for each member of the Board of Directors. That does not include other facilities in the form of housing Rp. 1 billion, transportation Rp. 3.87 billion and compensation of Rp 4.69 billion per year for 11 BOD
  8. 8. 3 BRI CEO 167.000.000 IDR Not including benefits BOD 333.000.000 IDR Salaries and allowances for BOD Rp. 40.3 billion. So that the average director receives income Rp. 4 billion / year or Rp. 333 million / month. That does not include bonuses, incentives and bonus received by directors and commissioners reached Rp. 159.9 billion 4 BNI BOD 314.000.000 IDR Salary and compensation received by directors and commissioners in 2009 amounted to Rp. 42 billion. 9 directors of BNI estimated income Rp. 34 billion during 2009. Thus earning the director of Rp. 3.7 billion / year or Rp. 314 million / month. However, no further explanation about the benefits and received a variety of facilities.
  9. 9. • BRI’s CEO got the highest base salary. • The second highest salary received by executives in Mandiri Bank. • Amount of bonus that received by CEO of Mandiri Bank bigger than BRI’s. • Take home pay for BNI’s executives probably around Rp. 314 million/ month for each person.
  10. 10. • Income based legal aspect from ministry Regulation, general meeting of Shareholder and also Bank Indonesia • Reason of giving big income In order of remain such best person with good quality, formerly SOEs minister arranging payment based on benchmark and compare with other banks. • Minister Already done make comparison and benchmark with some private banks in Asia
  11. 11. • General meeting of shareholders decided executives’ salaries, salaries that given in the range that written in Ministry Regulation. • Shareholders also measure from side of the management of business. Shareholders surely will adjust the compensation with the job responsibilities and business risk. • Central Bank will adjust the salary to boost management in order to avoid taking high risk by executives. • Central Bank will complete the policy related fit and proper test and the function of general banks’ regulation.
  12. 12. • Gap of three Banks Take home pay of executives in Mandiri bigger than BNI and BRI. There probably some reason such: Results from general meeting of shareholders The share market The performance Facing more complexity business and bigger risk Company’s ability
  13. 13. Related to decided amount and form of compensation for executives, there are some important points should be considered: • Always consider the risk that will be facing by Bank in next periods. • Always adjusted the income with performance quality. • If any crisis facing by Banks, the amount of income should be considered again. • Consider the condition of Country and company ability. • General Meeting of Shareholders shall always obey the policy
  14. 14. THANKYOU
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