VietNamNet Bridge - Vietnamese business owners are willing to pay millions of dollars to managing directors who can bring fat profits to business.

The board of directors of TMT Automobile has consulted with its shareholders about the 2016-2020 5-year development plan which promises great awards to CEOs. 

Under the plan, if fulfilling the business plan, CEOs would be rewarded 1 million TMT shares, worth $2 million if considering the current price. 

In 2015, the CEO of the company received the award of VND18.6 billion as the company’s profits exceeded the plan. 

TMT also issued 1.5 million shares to reward the board of management as promised in the 2015 annual shareholders’ meeting resolution.

Analysts commented that the target set by TMT was very high with the profit growth rate of 30 percent. However, if considering the enterprise’s high growth rates in recent years, one may think the goal is still attainable

Vietnamese business owners are willing to pay millions of dollars to managing directors who can bring fat profits to business.

Vietnamese business owners nowadays are described as ‘generous enough’ to pay high rate to attract talented CEOs.

In mid-December 2014, The Gioi Di Dong JSC (MWG) issued 5.33 million ESOP shares to 600 workers. The workers did not have to pay for the shares, as the shares were part of the company’s post-tax profit.

With MWG share price of VND110,000 at that moment, the amount of shares was worth VND590 billion. Every worker received 9,000 shares on average, worth VND1 billion.

Nguyen Duc Tai, chair and CEO of The Gioi Di Dong, received 387,700 shares, valued at VND42.3 billion, or $2 million.

In Vietnam, FPT, the largest Vietnamese information technology group, is well known for paying its managers well. The CEO and members of the board of directors receive VND250 million a month on average.

However, key personnel of Vinamilk, the nation’s leading dairy producer, can receive even higher, about VND400 million. Meanwhile, each of the key staff at the Airports Corporation of Vietnam can receive up to VND100 million a month.

The owner of Hoa Sen Group Le Phuoc Vu in 2015 received VND110 billion in cash and 22 million shares, and the regular income of VND130 million a month.

In recent years, some business fields, including automobile, retail and food, have witnessed very high growth rates and they accept to offer great awards to key staff and workers.

At the extraordinary shareholders’ meeting in late November 2015, Ocean Group (OGC) decided to raise the pay for the president by 10 times to VND1.2 billion and the pay for the board of directors and board of supervision to VND1.74 billion.

A survey by Navigos conducted in the first quarter of 2016 showed that beverage, transport, retail and consumer goods now have high recruitment demand, offering attractive pay and working conditions. 

M. Ha