2008 Corporate Shareholder Value Awards

Recently,the KPMG’s Corporate Shareholder Value Award 2008 ceremony was officiated by Securities Commission chairman Tan Sri Zarinah Anwar.

Details:

• KPMG noted that the average economic profit over invested capital (EP/IC) among the top 100 listed companies here rose to 15.46 per cent last year,compared with 14.35 per cent in 2007 and 13.52 per cent in 2006.((KPMG uses EP/IC as a measure of a company’s shareholder value creation.)
• The agriculture and plantations industries showed the most improvement in terms of EP/IC last year.
• Cigarette maker British American Tobacco (M) Bhd (BAT) was named the overall winner for the sixth consecutive year,with an EP/IC of 68.03 per cent,followed by DiGi.com (42.31 per cent) and Amway (M) Holdings (41.68 per cent).
• Awards were also given to nine other industry categories.
• Tan Sri Zarinah Anwar,hope that there are an increased awareness among companies that the essence of shareholder value boils down to being able to set long-term objectives and delivering them,rather than merely focusing on the short-term. The companies should review how their compensation packages are structured to ensure that performance is tied to long-term objectives. This is to ensure that management of companies do not indulge in excessive risk-taking in the short-term to record good performance now,at the expense of long-term creation of value for shareholders.

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