Here's Why YTL Corporation Berhad's (KLSE:YTL) CEO May Deserve A Raise
Key Insights
YTL Corporation Berhad's Annual General Meeting to take place on 5th of December
Salary of RM1.22m is part of CEO Michael Yeoh's total remuneration
Total compensation is 77% below industry average
YTL Corporation Berhad's total shareholder return over the past three years was 157% while its EPS grew by 109% over the past three years
Shareholders will be pleased by the impressive results for YTL Corporation Berhad (KLSE:YTL) recently and CEO Michael Yeoh has played a key role. At the upcoming AGM on 5th of December, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.
Check out our latest analysis for YTL Corporation Berhad
How Does Total Compensation For Michael Yeoh Compare With Other Companies In The Industry?
According to our data, YTL Corporation Berhad has a market capitalization of RM17b, and paid its CEO total annual compensation worth RM1.6m over the year to June 2023. We note that's an increase of 35% above last year. Notably, the salary which is RM1.22m, represents most of the total compensation being paid.
In comparison with other companies in the Malaysia Integrated Utilities industry with market capitalizations ranging from RM9.3b to RM30b, the reported median CEO total compensation was RM7.0m. That is to say, Michael Yeoh is paid under the industry median. Moreover, Michael Yeoh also holds RM112m worth of YTL Corporation Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2021 | Proportion (2023) |
Salary | RM1.2m | RM609k | 75% |
Other | RM409k | RM592k | 25% |
Total Compensation | RM1.6m | RM1.2m | 100% |
Speaking on an industry level, nearly 19% of total compensation represents salary, while the remainder of 81% is other remuneration. YTL Corporation Berhad is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
YTL Corporation Berhad's Growth
Over the past three years, YTL Corporation Berhad has seen its earnings per share (EPS) grow by 109% per year. Its revenue is up 19% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 YTL Corporation Berhad Been A Good Investment?
Boasting a total shareholder return of 157% over three years, YTL Corporation Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in 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 compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which are concerning) in YTL Corporation Berhad we think you should know about.
Switching gears from YTL 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.