Increases to CAB Cakaran Corporation Berhad's (KLSE:CAB) CEO Compensation Might Cool off for now
Key Insights
CAB Cakaran Corporation Berhad's Annual General Meeting to take place on 25th of March
Salary of RM963.0k is part of CEO Hoon Chuah's total remuneration
The overall pay is 401% above the industry average
CAB Cakaran Corporation Berhad's EPS grew by 144% over the past three years while total shareholder return over the past three years was 66%
Under the guidance of CEO Hoon Chuah, CAB Cakaran Corporation Berhad (KLSE:CAB) has performed reasonably well recently. As shareholders go into the upcoming AGM on 25th of March, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for CAB Cakaran Corporation Berhad
How Does Total Compensation For Hoon Chuah Compare With Other Companies In The Industry?
At the time of writing, our data shows that CAB Cakaran Corporation Berhad has a market capitalization of RM505m, and reported total annual CEO compensation of RM1.4m for the year to September 2023. We note that's an increase of 16% above last year. We note that the salary portion, which stands at RM963.0k constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the Malaysian Food industry with market capitalizations under RM944m, the reported median total CEO compensation was RM278k. Hence, we can conclude that Hoon Chuah is remunerated higher than the industry median. Moreover, Hoon Chuah also holds RM10m worth of CAB Cakaran 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 | RM963k | RM894k | 69% |
Other | RM428k | RM303k | 31% |
Total Compensation | RM1.4m | RM1.2m | 100% |
Speaking on an industry level, nearly 68% of total compensation represents salary, while the remainder of 32% is other remuneration. Our data reveals that CAB Cakaran Corporation Berhad allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at CAB Cakaran Corporation Berhad's Growth Numbers
CAB Cakaran Corporation Berhad's earnings per share (EPS) grew 144% per year over the last three years. It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has CAB Cakaran Corporation Berhad Been A Good Investment?
Boasting a total shareholder return of 66% over three years, CAB Cakaran Corporation Berhad has done well by shareholders. 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 up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CAB Cakaran Corporation Berhad.
Switching gears from CAB Cakaran 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.