Yahoo Finance It Looks Like HeveaBoard Berhad's (KLSE:HEVEA) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
HeveaBoard Berhad's Annual General Meeting to take place on 28th of June
CEO Hau Yoong's total compensation includes salary of RM1.20m
The overall pay is 75% above the industry average
HeveaBoard Berhad's three-year loss to shareholders was 23% while its EPS was down 33% over the past three years
Shareholders will probably not be too impressed with the underwhelming results at HeveaBoard Berhad (KLSE:HEVEA) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 28th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for HeveaBoard Berhad
Comparing HeveaBoard Berhad's CEO Compensation With The Industry
Our data indicates that HeveaBoard Berhad has a market capitalization of RM201m, and total annual CEO compensation was reported as RM1.6m for the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of RM1.20m, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Malaysia Forestry industry with market capitalizations under RM942m, the reported median total CEO compensation was RM886k. Hence, we can conclude that Hau Yoong is remunerated higher than the industry median. What's more, Hau Yoong holds RM7.2m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM1.2m | RM1.2m | 77% |
Other | RM351k | RM353k | 23% |
Total Compensation | RM1.6m | RM1.5m | 100% |
On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Although there is a difference in how total compensation is set, HeveaBoard Berhad more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at HeveaBoard Berhad's Growth Numbers
Over the last three years, HeveaBoard Berhad has shrunk its earnings per share by 33% per year. In the last year, its revenue is down 15%.
Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 HeveaBoard Berhad Been A Good Investment?
With a three year total loss of 23% for the shareholders, HeveaBoard Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which is significant) in HeveaBoard Berhad we think you should know about.
Switching gears from HeveaBoard 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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