Yahoo Finance Shareholders Will Probably Hold Off On Increasing Sime Darby Property Berhad's (KLSE:SIMEPROP) CEO Compensation For The Time Being
Key Insights
Sime Darby Property Berhad to hold its Annual General Meeting on 20th of May
CEO Azmir Bin Azmi Merican's total compensation includes salary of RM2.32m
The total compensation is 187% higher than the average for the industry
Sime Darby Property Berhad's EPS grew by 101% over the past three years while total shareholder return over the past three years was 71%
Performance at Sime Darby Property Berhad (KLSE:SIMEPROP) has been reasonably good and CEO Azmir Bin Azmi Merican has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 20th of May, 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.
Check out our latest analysis for Sime Darby Property Berhad
Comparing Sime Darby Property Berhad's CEO Compensation With The Industry
Our data indicates that Sime Darby Property Berhad has a market capitalization of RM6.8b, and total annual CEO compensation was reported as RM5.3m for the year to December 2023. We note that's an increase of 28% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM2.3m.
On examining similar-sized companies in the Malaysian Real Estate industry with market capitalizations between RM4.7b and RM15b, we discovered that the median CEO total compensation of that group was RM1.8m. Hence, we can conclude that Azmir Bin Azmi Merican is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM2.3m | RM2.4m | 44% |
Other | RM3.0m | RM1.7m | 56% |
Total Compensation | RM5.3m | RM4.1m | 100% |
Speaking on an industry level, nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. In Sime Darby Property Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Sime Darby Property Berhad's Growth Numbers
Sime Darby Property Berhad has seen its earnings per share (EPS) increase by 101% a year over the past three years. It achieved revenue growth of 25% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sime Darby Property Berhad Been A Good Investment?
We think that the total shareholder return of 71%, over three years, would leave most Sime Darby Property Berhad shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Sime Darby Property Berhad that investors should think about before committing capital to this stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.
