Yahoo Finance We Think Some Shareholders May Hesitate To Increase G3 Global Berhad's (KLSE:G3) CEO Compensation
Key Insights
G3 Global Berhad to hold its Annual General Meeting on 27th of June
CEO Dirk Quinten's total compensation includes salary of RM600.7k
The overall pay is 39% above the industry average
G3 Global Berhad's EPS grew by 61% over the past three years while total shareholder loss over the past three years was 83%
The underwhelming share price performance of G3 Global Berhad (KLSE:G3) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.
View our latest analysis for G3 Global Berhad
How Does Total Compensation For Dirk Quinten Compare With Other Companies In The Industry?
According to our data, G3 Global Berhad has a market capitalization of RM94m, and paid its CEO total annual compensation worth RM601k over the year to December 2023. That's mostly flat as compared to the prior year's compensation. It is worth noting that the CEO compensation consists entirely of the salary, worth RM601k.
On comparing similar-sized companies in the Malaysian Healthcare industry with market capitalizations below RM942m, we found that the median total CEO compensation was RM431k. Hence, we can conclude that Dirk Quinten is remunerated higher than the industry median.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM601k | RM607k | 100% |
Other | - | RM642 | - |
Total Compensation | RM601k | RM607k | 100% |
On an industry level, around 82% of total compensation represents salary and 18% is other remuneration. On a company level, G3 Global Berhad prefers to reward its CEO through a salary, opting not to pay Dirk Quinten through non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
G3 Global Berhad's Growth
Over the past three years, G3 Global Berhad has seen its earnings per share (EPS) grow by 61% per year. In the last year, its revenue is up 369%.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has G3 Global Berhad Been A Good Investment?
Few G3 Global Berhad shareholders would feel satisfied with the return of -83% over three years. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
G3 Global Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are a bit unpleasant) in G3 Global 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.
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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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