Yahoo Finance Here's Why AEON Credit Service (M) Berhad's (KLSE:AEONCR) CEO May Deserve A Raise
Key Insights
AEON Credit Service (M) Berhad to hold its Annual General Meeting on 20th of June
Salary of RM624.0k is part of CEO Daisuke Maeda's total remuneration
The overall pay is 51% below the industry average
Over the past three years, AEON Credit Service (M) Berhad's EPS grew by 23% and over the past three years, the total shareholder return was 38%
The solid performance at AEON Credit Service (M) Berhad (KLSE:AEONCR) has been impressive and shareholders will probably be pleased to know that CEO Daisuke Maeda has delivered. This would be kept in mind at the upcoming AGM on 20th of June which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.
View our latest analysis for AEON Credit Service (M) Berhad
Comparing AEON Credit Service (M) Berhad's CEO Compensation With The Industry
Our data indicates that AEON Credit Service (M) Berhad has a market capitalization of RM3.8b, and total annual CEO compensation was reported as RM1.4m for the year to February 2024. That's a modest increase of 7.8% on the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM624k.
In comparison with other companies in the Malaysia Consumer Finance industry with market capitalizations ranging from RM1.9b to RM7.5b, the reported median CEO total compensation was RM2.8m. In other words, AEON Credit Service (M) Berhad pays its CEO lower than the industry median.
Component | 2024 | 2023 | Proportion (2024) |
Salary | RM624k | RM600k | 45% |
Other | RM763k | RM687k | 55% |
Total Compensation | RM1.4m | RM1.3m | 100% |
On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. AEON Credit Service (M) Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
AEON Credit Service (M) Berhad's Growth
Over the past three years, AEON Credit Service (M) Berhad has seen its earnings per share (EPS) grow by 23% per year. Its revenue is up 27% over the last year.
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. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has AEON Credit Service (M) Berhad Been A Good Investment?
We think that the total shareholder return of 38%, over three years, would leave most AEON Credit Service (M) Berhad shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same 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. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for AEON Credit Service (M) Berhad you should be aware of, and 1 of them can't be ignored.
Important note: AEON Credit Service (M) 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.
