Yahoo Finance It Looks Like Malakoff Corporation Berhad's (KLSE:MALAKOF) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
Malakoff Corporation Berhad will host its Annual General Meeting on 25th of April
Salary of RM2.57m is part of CEO Anwar Bin Abdul Ajib's total remuneration
Total compensation is 482% above industry average
Malakoff Corporation Berhad's EPS declined by 96% over the past three years while total shareholder loss over the past three years was 3.6%
Malakoff Corporation Berhad (KLSE:MALAKOF) has not performed well recently and CEO Anwar Bin Abdul Ajib will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of April. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for Malakoff Corporation Berhad
Comparing Malakoff Corporation Berhad's CEO Compensation With The Industry
At the time of writing, our data shows that Malakoff Corporation Berhad has a market capitalization of RM3.1b, and reported total annual CEO compensation of RM2.7m for the year to December 2023. That's a notable increase of 9.6% on last year. In particular, the salary of RM2.57m, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Malaysia Renewable Energy industry with market capitalizations ranging between RM1.9b and RM7.6b had a median total CEO compensation of RM457k. Accordingly, our analysis reveals that Malakoff Corporation Berhad pays Anwar Bin Abdul Ajib north of the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM2.6m | RM2.3m | 97% |
Other | RM90k | RM87k | 3% |
Total Compensation | RM2.7m | RM2.4m | 100% |
On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Investors will find it interesting that Malakoff Corporation Berhad pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Malakoff Corporation Berhad's Growth
Over the last three years, Malakoff Corporation Berhad has shrunk its earnings per share by 96% per year. In the last year, its revenue is down 12%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.
Has Malakoff Corporation Berhad Been A Good Investment?
Since shareholders would have lost about 3.6% over three years, some Malakoff Corporation Berhad investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Anwar receives almost all of their compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Malakoff Corporation Berhad you should be aware of, and 1 of them is concerning.
Important note: Malakoff Corporation Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
