Shareholders May Be More Conservative With Malayan Banking Berhad's (KLSE:MAYBANK) CEO Compensation For Now

Key Insights

• Malayan Banking Berhad's Annual General Meeting to take place on 24th of April
• CEO Khairussaleh Bin Ramli's total compensation includes salary of RM3.12m
• The overall pay is 757% above the industry average
• Malayan Banking Berhad's total shareholder return over the past three years was 35% while its EPS grew by 6.2% over the past three years

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Performance at Malayan Banking Berhad (KLSE:MAYBANK) has been reasonably good and CEO Khairussaleh Bin Ramli has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 24th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Malayan Banking Berhad

How Does Total Compensation For Khairussaleh Bin Ramli Compare With Other Companies In The Industry?

Our data indicates that Malayan Banking Berhad has a market capitalization of RM119b, and total annual CEO compensation was reported as RM12m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM3.1m.

On comparing similar companies in the Malaysian Banks industry with market capitalizations above RM35b, we found that the median total CEO compensation was RM1.4m. This suggests that Khairussaleh Bin Ramli is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 54% of total compensation out of all the companies we analyzed, while other remuneration made up 46% of the pie. Malayan Banking Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Malayan Banking Berhad's Growth Numbers

Over the past three years, Malayan Banking Berhad has seen its earnings per share (EPS) grow by 6.2% per year. In the last year, its revenue is up 8.7%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Malayan Banking Berhad Been A Good Investment?

Boasting a total shareholder return of 35% over three years, Malayan Banking 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. 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 can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Malayan Banking Berhad that investors should think about before committing capital to this stock.

Important note: Malayan Banking Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.