Yahoo Finance Shareholders Would Not Be Objecting To Kim Loong Resources Berhad's (KLSE:KMLOONG) CEO Compensation And Here's Why
Key Insights
Kim Loong Resources Berhad's Annual General Meeting to take place on 3rd of July
Salary of RM588.0k is part of CEO Seong Gooi's total remuneration
Total compensation is similar to the industry average
Kim Loong Resources Berhad's total shareholder return over the past three years was 93% while its EPS grew by 14% over the past three years
We have been pretty impressed with the performance at Kim Loong Resources Berhad (KLSE:KMLOONG) recently and CEO Seong Gooi deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 3rd of July. It is likely that the focus will be on company strategy going forward as shareholders hear from the board and cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
See our latest analysis for Kim Loong Resources Berhad
Comparing Kim Loong Resources Berhad's CEO Compensation With The Industry
At the time of writing, our data shows that Kim Loong Resources Berhad has a market capitalization of RM2.1b, and reported total annual CEO compensation of RM1.8m for the year to January 2024. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at RM588k.
In comparison with other companies in the Malaysian Food industry with market capitalizations ranging from RM943m to RM3.8b, the reported median CEO total compensation was RM1.8m. This suggests that Kim Loong Resources Berhad remunerates its CEO largely in line with the industry average. What's more, Seong Gooi holds RM12m 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 | RM588k | RM576k | 33% |
Other | RM1.2m | RM1.2m | 67% |
Total Compensation | RM1.8m | RM1.7m | 100% |
On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. Kim Loong Resources Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Kim Loong Resources Berhad's Growth Numbers
Kim Loong Resources Berhad has seen its earnings per share (EPS) increase by 14% a year over the past three years. Its revenue is down 20% over the previous year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Kim Loong Resources Berhad Been A Good Investment?
We think that the total shareholder return of 93%, over three years, would leave most Kim Loong Resources 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...
Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for Kim Loong Resources Berhad that investors should look into moving forward.
Switching gears from Kim Loong Resources 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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