Here's Why Shareholders Should Examine Advance Synergy Berhad's (KLSE:ASB) CEO Compensation Package More Closely

Key Insights

• Advance Synergy Berhad will host its Annual General Meeting on 26th of June
• Total pay for CEO Su Lee includes RM660.0k salary
• The overall pay is 700% above the industry average
• Over the past three years, Advance Synergy Berhad's EPS fell by 26% and over the past three years, the total loss to shareholders 21%

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Shareholders will probably not be too impressed with the underwhelming results at Advance Synergy Berhad (KLSE:ASB) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of June. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Advance Synergy Berhad

How Does Total Compensation For Su Lee Compare With Other Companies In The Industry?

According to our data, Advance Synergy Berhad has a market capitalization of RM164m, and paid its CEO total annual compensation worth RM1.0m over the year to December 2024. That's a notable increase of 11% on last year. Notably, the salary which is RM660.0k, represents most of the total compensation being paid.

In comparison with other companies in the Malaysia Industrials industry with market capitalizations under RM852m, the reported median total CEO compensation was RM126k. Hence, we can conclude that Su Lee is remunerated higher than the industry median.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Advance Synergy Berhad pays out 66% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Advance Synergy Berhad's Growth

Advance Synergy Berhad has reduced its earnings per share by 26% a year over the last three years. Its revenue is down 1.7% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Advance Synergy Berhad Been A Good Investment?

With a three year total loss of 21% for the shareholders, Advance Synergy Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Advance Synergy Berhad you should be aware of, and 1 of them doesn't sit too well with us.

Important note: Advance Synergy 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.