The Influence of Corporate Governance Structure on Directors’ Remuneration Disclosure in Malaysia: An Analysis of the FTSE30 Companies

This research explores whether the disclosure of directors’ compensation in FTSE30 companies in Malaysia between 2007 and 2014 can be explained by the corporate governance mechanisms, particularly ownership and governance structures. The findings demonstrate that ownership structure significantly influences remuneration disclosure, both in government and foreign-owned companies. However, the governance structure shows a relatively weaker impact on disclosure. Only board independence and board size have a significant impact on the extent of remuneration disclosure. Interestingly, the separation of CEO and Chairman roles does not affect remuneration disclosure, while the presence of big-4 auditors has a negative impact on disclosure. These findings respond to the need for more research on directors’ compensation disclosure, given its distinctive sensitivity and strategic nature. Furthermore, the results hold significant implications for Malaysian regulators involved in shaping the next Malaysian Code of Corporate Governance, particularly in the context of directors’ compensation disclosure.