Yahoo Finance Shareholders Would Not Be Objecting To Crescendo Corporation Berhad's (KLSE:CRESNDO) CEO Compensation And Here's Why
Key Insights
Crescendo Corporation Berhad's Annual General Meeting to take place on 3rd of July
CEO Seong Lim Gooi's total compensation includes salary of RM540.0k
The overall pay is comparable to the industry average
Crescendo Corporation Berhad's total shareholder return over the past three years was 254% while its EPS grew by 28% over the past three years
The performance at Crescendo Corporation Berhad (KLSE:CRESNDO) has been quite strong recently and CEO Seong Lim Gooi has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 3rd of July. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
Check out our latest analysis for Crescendo Corporation Berhad
How Does Total Compensation For Seong Lim Gooi Compare With Other Companies In The Industry?
According to our data, Crescendo Corporation Berhad has a market capitalization of RM1.0b, and paid its CEO total annual compensation worth RM1.3m over the year to January 2024. Notably, that's an increase of 11% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at RM540k.
For comparison, other companies in the Malaysian Real Estate industry with market capitalizations ranging between RM471m and RM1.9b had a median total CEO compensation of RM1.7m. From this we gather that Seong Lim Gooi is paid around the median for CEOs in the industry. What's more, Seong Lim Gooi holds RM5.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2024 | 2023 | Proportion (2024) |
Salary | RM540k | RM540k | 40% |
Other | RM795k | RM662k | 60% |
Total Compensation | RM1.3m | RM1.2m | 100% |
Talking in terms of the industry, salary represented approximately 74% of total compensation out of all the companies we analyzed, while other remuneration made up 26% of the pie. It's interesting to note that Crescendo Corporation Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Crescendo Corporation Berhad's Growth
Crescendo Corporation Berhad's earnings per share (EPS) grew 28% per year over the last three years. It achieved revenue growth of 58% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Crescendo Corporation Berhad Been A Good Investment?
We think that the total shareholder return of 254%, over three years, would leave most Crescendo Corporation Berhad shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.
Whatever your view on compensation, you might want to check if insiders are buying or selling Crescendo Corporation Berhad shares (free trial).
Switching gears from Crescendo Corporation Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
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