Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Frontken Corporation Berhad's (KLSE:FRONTKN) CEO For Now
Key Insights
Frontken Corporation Berhad's Annual General Meeting to take place on 14th of June
Salary of RM72.8k is part of CEO Nicholas Ng's total remuneration
Total compensation is 665% above industry average
Frontken Corporation Berhad's EPS grew by 10% over the past three years while total shareholder return over the past three years was 58%
CEO Nicholas Ng has done a decent job of delivering relatively good performance at Frontken Corporation Berhad (KLSE:FRONTKN) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 14th of June. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Frontken Corporation Berhad
How Does Total Compensation For Nicholas Ng Compare With Other Companies In The Industry?
According to our data, Frontken Corporation Berhad has a market capitalization of RM6.9b, and paid its CEO total annual compensation worth RM7.0m over the year to December 2023. We note that's a decrease of 13% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM73k.
On examining similar-sized companies in the Malaysia Commercial Services industry with market capitalizations between RM4.7b and RM15b, we discovered that the median CEO total compensation of that group was RM919k. This suggests that Nicholas Ng is paid more than the median for the industry. Moreover, Nicholas Ng also holds RM53m worth of Frontken Corporation Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM73k | RM73k | 1% |
Other | RM7.0m | RM8.0m | 99% |
Total Compensation | RM7.0m | RM8.0m | 100% |
On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. A high-salary is usually a no-brainer when it comes to attracting the best executives, but Frontken Corporation Berhad paid Nicholas Ng a nominal salary to the CEO over the past 12 months, instead focusing on non-salary compensation. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Frontken Corporation Berhad's Growth
Frontken Corporation Berhad has seen its earnings per share (EPS) increase by 10% a year over the past three years. It achieved revenue growth of 2.9% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Frontken Corporation Berhad Been A Good Investment?
Boasting a total shareholder return of 58% over three years, Frontken 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.
In Summary...
Frontken Corporation Berhad prefers rewarding its CEO through non-salary benefits. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.
Whatever your view on compensation, you might want to check if insiders are buying or selling Frontken Corporation Berhad shares (free trial).
Switching gears from Frontken 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.
