Wed07182018

LAST_UPDATETue, 17 Jul 2018 10pm

A Malaysian-Born Businessman Is Now The Highest Paid CEO In America

Tan with US President Donald Trump at the White House on 3 November 2017 as the company announced it was moving its headquarters from Singapore to the US. Filepic: YoutubeTan with US President Donald Trump at the White House on 3 November 2017 as the company announced it was moving its headquarters from Singapore to the US. Filepic: Youtube

According to a Wall Street Journal's analysis of how much chief executive officers of companies listed on the American stock market made, the highest pay recorded for 2017 was US$103.2 million (RM406.9 million), WSJ reports.

The CEO who earned that nine-figure pay last year is not from IBM, Apple or even Microsoft but Broadcom, and he hails from Penang, Malaysia.

Hock Tan, or as he was born in Penang, Tan Eng Hock could not afford to pay for his initial trip to United States as a student and it was only through a scholarship from the Massachusetts Institute of Technology (MIT) that he made his way to America just in time for the tech sector boom of the 1990s, The Edge Markets reported back in 2017.

From MIT, he went on to Harvard University to earn his MBA degree before being picked by Malaysian tycoon and Hong Leong bank co-founder Tan Sri Quek Leng Chan as managing director of Hume Industries in Malaysia from 1983 to 1988 before helming a venture capital fund in Singapore from 1988 to 1992.Pic: WSJPic: WSJ

Tan then relocated back to the US as vice-president of finance for PC maker Commodore International, then worked as a senior finance executive at PepsiCo and as a senior executive at General Motors, eventually acquiring US citizenship.

Tan made headlines worldwide in November last year when he appeared next to US President Donald Trump in the White House to address a press conference about his company Broadcom relocating from Singapore back to the US in a move that would return US$20bil in revenue to the US, TheStar reported.

According to the WSJ report, the average CEO among the biggest companies in the U.S. made US$12.1 million in 2017 so Tan's pay is indeed astounding given his modest roots.

Pic: WSJPic: WSJ

Tan’s nine-figure salary is still a bit of an outlier, with the second-highest-paid CEO, Les Moonves of CBS, coming out at US$69.3 million in 2017, TIME magazine reports on the stunning news earlier this week.

The TIME article goes on to describe how Tan's pay comes mainly from shares in Broadcom.

His cash salary comes to US$1.1 million in 2017 and the lion’s share of his money came from shares that Broadcom awarded to Tan, which held a value of $98.3 million, according to public records.

Tan also took home a performance bonus of US$3.7 million for exceeding revenue and operating margin targets. And his windfall includes US$23,234 in travel expenses, US$16,200 in 401(k) employer matching contribution, and US$36,386 for car service.

All told, Tan made approximately 2,039 times more than the average U.S. worker, who earned US$50,620, based on Bureau of Labor Statistics figures, the article notes.

- mD