Increases to CEO Compensation Might Be Put On Hold For Now at Alliance Bank Malaysia Berhad (KLSE:ABMB)

Key Insights

• Alliance Bank Malaysia Berhad's Annual General Meeting to take place on 30th of July
• Total pay for CEO Kellee Kam includes RM3.87m salary
• The overall pay is 819% above the industry average
• Over the past three years, Alliance Bank Malaysia Berhad's EPS grew by 5.5% and over the past three years, the total shareholder return was 59%

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Under the guidance of CEO Kellee Kam, Alliance Bank Malaysia Berhad (KLSE:ABMB) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of July. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Alliance Bank Malaysia Berhad

How Does Total Compensation For Kellee Kam Compare With Other Companies In The Industry?

According to our data, Alliance Bank Malaysia Berhad has a market capitalization of RM7.8b, and paid its CEO total annual compensation worth RM8.3m over the year to March 2025. Notably, that's an increase of 11% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM3.9m.

In comparison with other companies in the Malaysian Banks industry with market capitalizations ranging from RM4.2b to RM14b, the reported median CEO total compensation was RM900k. Accordingly, our analysis reveals that Alliance Bank Malaysia Berhad pays Kellee Kam north of the industry median.

On an industry level, roughly 47% of total compensation represents salary and 53% is other remuneration. Our data reveals that Alliance Bank Malaysia Berhad allocates salary more or less in line with the wider market. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Alliance Bank Malaysia Berhad's Growth

Over the past three years, Alliance Bank Malaysia Berhad has seen its earnings per share (EPS) grow by 5.5% per year. Its revenue is up 10% over the last year.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Alliance Bank Malaysia Berhad Been A Good Investment?

We think that the total shareholder return of 59%, over three years, would leave most Alliance Bank Malaysia Berhad shareholders smiling. 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...

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 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 1 warning sign for Alliance Bank Malaysia Berhad that you should be aware of before investing.

Switching gears from Alliance Bank Malaysia 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.