We Think Some Shareholders May Hesitate To Increase Kumpulan H & L High-Tech Berhad's (KLSE:HIGHTEC) CEO Compensation

Key Insights

• Kumpulan H & L High-Tech Berhad's Annual General Meeting to take place on 18th of April
• CEO Lye Tan's total compensation includes salary of RM672.0k
• The total compensation is 607% higher than the average for the industry
• Kumpulan H & L High-Tech Berhad's EPS grew by 33% over the past three years while total shareholder return over the past three years was 40%

Performance at Kumpulan H & L High-Tech Berhad (KLSE:HIGHTEC) has been reasonably good and CEO Lye Tan has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of April. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Kumpulan H & L High-Tech Berhad

How Does Total Compensation For Lye Tan Compare With Other Companies In The Industry?

Our data indicates that Kumpulan H & L High-Tech Berhad has a market capitalization of RM103m, and total annual CEO compensation was reported as RM888k for the year to October 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of RM672.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Malaysian Machinery industry with market capitalizations under RM950m, the reported median total CEO compensation was RM126k. Accordingly, our analysis reveals that Kumpulan H & L High-Tech Berhad pays Lye Tan north of the industry median. Moreover, Lye Tan also holds RM8.0m worth of Kumpulan H & L High-Tech 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	RM672k	RM672k	76%
Other	RM216k	RM197k	24%
Total Compensation	RM888k	RM869k	100%

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. Our data reveals that Kumpulan H & L High-Tech Berhad allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Kumpulan H & L High-Tech Berhad's Growth Numbers

Kumpulan H & L High-Tech Berhad has seen its earnings per share (EPS) increase by 33% a year over the past three years. It saw its revenue drop 4.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Kumpulan H & L High-Tech Berhad Been A Good Investment?

Boasting a total shareholder return of 40% over three years, Kumpulan H & L High-Tech 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.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for Kumpulan H & L High-Tech Berhad that investors should think about before committing capital to this stock.

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.