Annual compensation for all listed firms' directors rose 8-11 per cent in line with operational performance, according to a study by the SET's Corporate Governance Centre.

The summary of remuneration paid to directors and management by listed companies will be useful as a reference in determining pay for other listed firms, the centre said.

"We found that most companies compensated their directors and executives in line with the firms' revenue and profitability. Over this year, although directors were paid from zero to Bt9.4 million, with an average rate of Bt0.5 million, variances from the mean were wide," said Suthichai Chitvanich, SET executive vice president for corporate compliance and governance.

"Directors should not be overpaid, but should be compensated in accordance with the director's experience and performance, and be on a par with other companies in the industry."

Total remuneration paid this year to one executive ranged from Bt0.2 million to Bt27.76 million, with an average of Bt3.2 million a year. During the past four years, on average, directors have seen earnings rise 11 per cent per year, or slightly higher than the 8 per cent enjoyed by executives.

The three sectors with the highest average rate of executives' remuneration were banking, commerce and mining.

The finance and securities sector has shown a wide discrepancy between the lowest and highest remuneration since 2003, as more firms listed in the sector.

Suthichai said the centre provided a Bt4-million annual subsidy to support the participation of 524 directors in the centre's directors' accreditation programme.

The report showed the remuneration paid as of the end of the most recent accounting period. In 2006, the data came from 472 companies in 29 sectors, excluding firms that had been delisted, had

incomplete information or were under rehabilitation.

Executives were defined as the first four executives under the president, including those whose rank was equivalent with the fourth one.

Siriporn     Chanjindamanee

The Nation