KEY ATTRIBUTED OF BEST PRACTICES IN EXECUTIVE COMPENSATION FROM MALAYSIAN LISTED COMPANIES

Authors

  • INTAN NUR NATASYA AHMAD RIZAUDIN Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia.
  • MOHD SHAZWAN MOHD ARIFFIN Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia.

DOI:

https://doi.org/10.55197/qjssh.v6i6.884

Keywords:

best practices, executive, transparency, governance, ethical

Abstract

This study investigates the implementation of best practices in executive compensation among Malaysian publicly listed companies, focusing on their compliance with the Malaysian Code on Corporate Governance 2021. Utilizing a sample of 26 firms and 222 directorship profiles, the research evaluates the extent to which remuneration policies align with performance metrics, transparency standards and ethical governance practices in financial year ended 2024. The findings reveal full compliance with MCCG Practice 8.1, indicating a widespread commitment to baseline transparency. However, adoption rates for Practices 8.2 and 8.3 are critically low, suggesting a lack of depth in governance maturity. A significant correlation was found between firms that adopt gender diversity and professional development for directors and improved adherence to remuneration related governance practices. Therefore, the study contributes to the discourse on ethical leadership in emerging markets, offering practical insights for policymakers, regulators and boards aiming to promote equitable, performance-aligned executive compensation. A key limitation is the small sample size, which may limit the generalizability of the findings. Future research should expand the dataset and include qualitative insights.

Author Biographies

  • INTAN NUR NATASYA AHMAD RIZAUDIN, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia.

    Intan Nur Natasya Ahmad Rizaudin currently is a final year student in Policy Studies Department, Faculty of Business, Economics and Social Development Universiti Malaysia Terengganu (UMT). At present, she is performing final year project reports under Bachelor’s Management (Policy Studies), Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, MALAYSIA in Session II 2024/2025.

  • MOHD SHAZWAN MOHD ARIFFIN, Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Terengganu, Malaysia.

    Mohd Shazwan Mohd Ariffin earned his Diploma in Public Administration in 2008 and a Bachelor of Corporate Administration in 2010 from Universiti Teknologi MARA, Kedah and Shah Alam campuses, respectively. These achievements laid the foundation for his knowledge in various disciplines, including, governance, accounting, finance, policy, and administration. Prior to joining Universiti Malaysia Terengganu (UMT) in late 2023, he gained valuable industrial experience in the private sector as well as in other higher learning institutions. The expertise acquired from his industry experience has been applied in teaching disciplines such as International Relations, ASEAN Community, Government, and Foundation for Political Science during his tenure at UMT. He holds professional memberships as an Associate Member of the Institute of Chartered Secretaries & Administrators, a Member of the Malaysian Institute of Corporate Governance, and a Member of the Malaysian Economic Association. During his PhD journey, he was appointed as a research officer, contributing to both local and international grants. His accomplishments as a researcher include co-authoring publications resulting from two Fundamental Research Grant Schemes (2017-2020), an International Research Grant Scheme from Sumitomo, Japan (2021), and the Geran Penjanaan (2023). All these projects were successfully completed and published in indexed journals. His passion and expertise in policy, leadership, and corporate governance are reflected in his publication, The Quality of Annual General Meeting Minutes of Listed Companies in Malaysia, which was referenced in the 4th Edition of the Corporate Governance Guide by Bursa Malaysia, a key resource for corporate directors and professionals in regulatory and monitoring bodies in Malaysia.

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Published

2025-12-30

Issue

Vol. 6 No. 6 (2025): QJSSH

Section

Articles

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Copyright (c) 2025 INTAN NUR NATASYA AHMAD RIZAUDIN, MOHD SHAZWAN MOHD ARIFFIN

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite

KEY ATTRIBUTED OF BEST PRACTICES IN EXECUTIVE COMPENSATION FROM MALAYSIAN LISTED COMPANIES. (2025). Quantum Journal of Social Sciences and Humanities, 6(6), 391-404. https://doi.org/10.55197/qjssh.v6i6.884