FIINGROUP PUBLISHES REPORT ON “REMUNERATION OF GENERAL DIRECTOR, CHAIRMAN, AND INDEPENDENT DIRECTOR AT VIETNAM PUBLIC COMPANIES”

2023 saw Vietnamese economy facing challenges from inflation and a declined export demand but continuing to grow thanks to foreign investment and flexible monetary policies. In this turbulent context, understanding how Vietnamese companies adjust their strategies and executive remuneration is crucial. The report "Remuneration of General Director, Chairman and Independent Director at Vietnam Public Companies”, conducted by FiinGroup and FiinRatings, analyzes data from a survey of 200 public companies on the Vietnamese securities market. 

The report provides detailed information based on data from 200 public companies representing 85.6% of the total market capitalization across three exchanges as of the end of 2023. These public companies generated nearly 3.3 trillion VND in revenue in 2023, accounting for 72% of the total net revenue of listed companies on these exchanges and equivalent to 32% of Vietnam's GDP at constant prices for the same year. 

Key highlights of the report include: 

• CEO Compensation: The average income was 2.5 billion VND per year per person in 2023. Real estate, financial services (primarily securities companies), and insurance sectors had the highest average incomes for CEOs. In terms of company type, state-owned enterprises had significantly lower average CEO incomes compared to private enterprises, despite similar operational efficiency. 

• Chairman of the Board Compensation: The average for 2023 was 1.7 billion VND per person. Banks and financial services (primarily securities companies) had the highest average incomes for Chairmen of the Board, due to the involvement of these leaders in operational management. The correlation between income and operational efficiency was clearer when examined by market capitalization. 

• Independent Board Member Compensation: There is a significant disparity between sectors, with the highest incomes found in personal goods and banking sectors, though the average income remains symbolic in many companies. By market capitalization, the average income of Independent Board Members improved significantly in the small-cap sector in 2023 and slightly decreased in the mid-cap sector. 

FiinGroup, FiinRatings, and VNIDA aim to provide standard benchmark data for companies, especially for major shareholders, CEOs, Chairmen of the Board, and board members, including independent members, in designing effective governance mechanisms and remunation structures. 

This report results from close collaboration between FiinGroup, FiinRatings, and VNIDA to offer an insightful and comprehensive view of the income structure of executives at listed companies in Vietnam. Leveraging a rich data system and extensive experience in financial analysis, experts at FiinGroup, FiinRatings, and VNIDA have applied modern statistical methods to produce an objective, accurate, and reliable report. 

Please click HERE for the detailed report in English! 

Please click HERE for the detailed report in Vietnamese!