Billionaire salary is difficult
While businesses are rushing to announce their third quarter 2023 business results, Kien Giang Construction Investment Consulting Group Joint Stock Company (CKG) has just reported its audited 2023 semi-annual report with a sharp decrease in profits. The company's shares have also been put under control since October 12. However, the remuneration of the real estate company's leaders is still very high, with some people earning up to nearly 1.4 billion VND/month.
Accordingly, the remuneration for Chairman of the Board of Directors Tran Tho Thang reached more than 8.4 billion VND in the first half of 2023, equivalent to more than 1.4 billion VND/month. This income has decreased compared to nearly 9.7 billion VND in the same period but is 300 times higher than the income of the remaining members.
Kien Giang Construction Investment Consulting Group operates in the real estate sector and has a number of typical projects such as the Northwest Urban Area, Nam An Hoa project, Vinh Hang Cemetery Park project... According to CKG, the company's profits decreased due to high interest expenses, a sluggish real estate market and having to add provisions for bad debt...
Meanwhile, according to the financial report for the third quarter of 2023, Mobile World Investment Corporation (MWG) recorded a disastrous drop in profits, down 96% year-on-year to VND39 billion (compared to a capitalization of more than VND55,000 billion). Chairman Nguyen Duc Tai, member of the Board of Directors Doan Van Hieu Em and General Director Tran Huy Thanh Tung did not receive salaries this quarter.
However, member Robert Willett still had a salary of 1 billion VND in the third quarter. Total income from salaries of MWG's senior leaders was 3.6 billion VND, compared to 8.5 billion VND in 2022 and over 10 billion VND on average in many previous years.
In the third quarter of 2023, Phat Dat Real Estate (PDR)'s profit decreased by 86% compared to the same period, but Chairman Nguyen Van Dat's salary still reached nearly 500 million VND during the period, even though this level decreased by more than 80% compared to the same period.
The real estate market is still facing many difficulties. Real estate businesses have to focus on restructuring debt after the crisis in the bond market. Phat Dat Real Estate has just been approved by the State Securities Commission to issue more than 67 million individual shares to raise nearly VND672 billion to pay off all principal and interest of bonds that the company issued in 2021 and 2022 (a total of 7 lots). In the first 9 months of the year, PDR spent a total of more than VND1,500 billion to buy back many lots of bonds.
In a difficult year of 2022, many business leaders still recorded billions of VND in income per month. Vincom Retail General Director Tran Mai Hoa received nearly 1 billion VND per month. Mai Kieu Lien (Vinamilk) received about 540 million VND per month.
In 2021, 7 members of the Board of Directors of Hoa Phat Group (HPG) received nearly 118 billion VND in remuneration, an average of 1.4 billion VND/month per person.
Get paid 0 dong
On the other hand, many business leaders receive zero salary. Some business owners do not even receive executive compensation during the years when the business is growing.
If in 2021, each member of Hoa Phat's Board of Directors received a salary of 1.4 billion VND/month, in 2022, members of HPG's Board of Directors, including Chairman Tran Dinh Long, did not receive a salary.
In 2022, in the fourth quarter of 2022, HPG suffered a record loss of nearly VND2,000 billion, thereby reducing the annual profit to more than VND8,400 billion, equivalent to 24% of the previous year. 2022 is also the first year that Mr. Tran Dinh Long's Hoa Phat Group failed to complete the after-tax profit plan assigned by the General Meeting of Shareholders.
As mentioned above, due to plummeting profits, Mobile World (MWG) Chairman Nguyen Duc Tai also received a salary of 0 VND in the third quarter of 2023. Board member Doan Van Hieu Em and General Director Tran Huy Thanh Tung both did not receive salaries this quarter.
After taking office as Chairman of the Board of Directors of Coteccons (CTD) at the end of 2020, Mr. Bolat Duisenov also committed to receiving a salary of $1 until the company's situation improved. Since then, the company has been facing many difficulties and its stock price has fallen sharply.
In recent years, although businesses have been doing quite well, many business leaders have not received salaries, such as Mr. Pham Nhat Vuong (Chairman of Vingroup), Mr. Truong Gia Binh (Chairman of FPT), Ms. Nguyen Thi Thanh Phuong (Ban Biet Securities),...
Over the past decade, Ms. Nguyen Thanh Phuong, Chairwoman of the Board of Directors of Ban Viet Securities, has continuously received zero salary. Meanwhile, Chairman Nguyen Dang Quang and the Board of Directors of Masan Group have not received salary since 2013 despite achieving impressive business results.
Not accepting compensation is seen as a sharing of the executive board, easing the tragic operating situation, but also a commitment to work for greater purposes, but sometimes also considered a PR opportunity for the business.
In fact, many business leaders have very large incomes that can far exceed normal salaries and bonuses. That is the increase in the size and value of the business with a strong increase in stock price.
The assets of leaders from stocks increased sharply. In addition, there were bonuses in stocks or preferential purchase of ESOP stocks. As major shareholders, many leaders still received tens of hundreds of billions of dong in dividends each year.
Many bosses with "zero salary" have become USD billionaires such as Mr. Pham Nhat Vuong, Mr. Tran Dinh Long, Mr. Nguyen Dang Quang...
Around the world, many businessmen have seen their assets increase sharply mainly due to increased stock prices through good business results, such as Tim Cook (CEO Apple), Elon Musk (Tesla)...
The remuneration of Vietnamese tycoons - the people who drive businesses - is always a matter of interest to many people.
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