It's Unlikely That New Hoong Fatt Holdings Berhad's (KLSE:NHFATT) CEO Will See A Huge Pay Rise This Year

Key Insights

• New Hoong Fatt Holdings Berhad will host its Annual General Meeting on 4th of June
• CEO Jit Chin's total compensation includes salary of RM802.1k
• The overall pay is 288% above the industry average
• Over the past three years, New Hoong Fatt Holdings Berhad's EPS grew by 23% and over the past three years, the total shareholder return was 100%

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Performance at New Hoong Fatt Holdings Berhad (KLSE:NHFATT) has been reasonably good and CEO Jit Chin 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 4th of June. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for New Hoong Fatt Holdings Berhad

Comparing New Hoong Fatt Holdings Berhad's CEO Compensation With The Industry

According to our data, New Hoong Fatt Holdings Berhad has a market capitalization of RM322m, and paid its CEO total annual compensation worth RM976k over the year to December 2024. That's a notable decrease of 20% on last year. Notably, the salary which is RM802.1k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysia Auto Components industry with market capitalizations below RM845m, reported a median total CEO compensation of RM252k. Accordingly, our analysis reveals that New Hoong Fatt Holdings Berhad pays Jit Chin north of the industry median. Moreover, Jit Chin also holds RM4.0m worth of New Hoong Fatt Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 75% of total compensation out of all the companies we analyzed, while other remuneration made up 25% of the pie. There isn't a significant difference between New Hoong Fatt Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. 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.

New Hoong Fatt Holdings Berhad's Growth

New Hoong Fatt Holdings Berhad has seen its earnings per share (EPS) increase by 23% a year over the past three years. Its revenue is down 4.2% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in 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 New Hoong Fatt Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 100% over three years, New Hoong Fatt Holdings Berhad has done well by shareholders. 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...

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. 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.

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 New Hoong Fatt Holdings Berhad that investors should think about before committing capital to this stock.

Switching gears from New Hoong Fatt Holdings 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.