Yahoo Finance We Think Tanco Holdings Berhad's (KLSE:TANCO) CEO Compensation Looks Fair
Key Insights
Tanco Holdings Berhad will host its Annual General Meeting on 20th of December
CEO Andrew Tan's total compensation includes salary of RM576.0k
Total compensation is similar to the industry average
Over the past three years, Tanco Holdings Berhad's EPS grew by 91% and over the past three years, the total shareholder return was 1,060%
It would be hard to discount the role that CEO Andrew Tan has played in delivering the impressive results at Tanco Holdings Berhad (KLSE:TANCO) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 20th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. We think the CEO has done a pretty decent job and we discuss why the CEO compensation is appropriate.
See our latest analysis for Tanco Holdings Berhad
Comparing Tanco Holdings Berhad's CEO Compensation With The Industry
Our data indicates that Tanco Holdings Berhad has a market capitalization of RM1.2b, and total annual CEO compensation was reported as RM805k for the year to June 2023. That's a notable increase of 20% on last year. Notably, the salary which is RM576.0k, represents most of the total compensation being paid.
In comparison with other companies in the Malaysian Real Estate industry with market capitalizations ranging from RM471m to RM1.9b, the reported median CEO total compensation was RM963k. So it looks like Tanco Holdings Berhad compensates Andrew Tan in line with the median for the industry. Furthermore, Andrew Tan directly owns RM129m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM576k | RM576k | 72% |
Other | RM229k | RM93k | 28% |
Total Compensation | RM805k | RM669k | 100% |
Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. There isn't a significant difference between Tanco Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. 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.
Tanco Holdings Berhad's Growth
Tanco Holdings Berhad has seen its earnings per share (EPS) increase by 91% a year over the past three years. In the last year, its revenue is up 183%.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tanco Holdings Berhad Been A Good Investment?
Boasting a total shareholder return of 1,060% over three years, Tanco Holdings Berhad has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Tanco Holdings Berhad that you should be aware of before investing.
Switching gears from Tanco Holdings 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.
