Shareholders Would Not Be Objecting To Sunway Berhad's (KLSE:SUNWAY) CEO Compensation And Here's Why

editorial-team@simplywallst.com (Simply Wall St)

18 June 2024 at 6:02 pm·3-min read

Key Insights

Sunway Berhad's Annual General Meeting to take place on 25th of June
Salary of RM912.9k is part of CEO Hoi Chan's total remuneration
The overall pay is comparable to the industry average
Over the past three years, Sunway Berhad's EPS grew by 27% and over the past three years, the total shareholder return was 126%

The performance at Sunway Berhad (KLSE:SUNWAY) has been quite strong recently and CEO Hoi Chan has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 25th of June. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Sunway Berhad

Comparing Sunway Berhad's CEO Compensation With The Industry

According to our data, Sunway Berhad has a market capitalization of RM21b, and paid its CEO total annual compensation worth RM2.1m over the year to December 2023. There was no change in the compensation compared to last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM913k.

For comparison, other companies in the Malaysia Industrials industry with market capitalizations ranging between RM9.4b and RM30b had a median total CEO compensation of RM2.1m. So it looks like Sunway Berhad compensates Hoi Chan in line with the median for the industry.

Component	2023	2023	Proportion (2023)
Salary	RM913k	RM913k	43%
Other	RM1.2m	RM1.2m	57%
Total Compensation	RM2.1m	RM2.1m	100%

Talking in terms of the industry, salary represented approximately 57% of total compensation out of all the companies we analyzed, while other remuneration made up 43% of the pie. Sunway Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Sunway Berhad's Growth Numbers

Sunway Berhad's earnings per share (EPS) grew 27% per year over the last three years. It achieved revenue growth of 18% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Sunway Berhad Been A Good Investment?

We think that the total shareholder return of 126%, over three years, would leave most Sunway Berhad shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Sunway Berhad we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Key Insights

Comparing Sunway Berhad's CEO Compensation With The Industry

A Look at Sunway Berhad's Growth Numbers

Has Sunway Berhad Been A Good Investment?

In Summary...

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