This Is Why Berjaya Corporation Berhad's (KLSE:BJCORP) CEO Compensation Looks Appropriate

Key Insights

• Berjaya Corporation Berhad to hold its Annual General Meeting on 12th of December
• CEO Vivienne Cheng's total compensation includes salary of RM401.0k
• Total compensation is similar to the industry average
• Berjaya Corporation Berhad's EPS grew by 102% over the past three years while total shareholder return over the past three years was 16%

Performance at Berjaya Corporation Berhad (KLSE:BJCORP) has been reasonably good and CEO Vivienne Cheng has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 12th of December, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis for Berjaya Corporation Berhad

How Does Total Compensation For Vivienne Cheng Compare With Other Companies In The Industry?

Our data indicates that Berjaya Corporation Berhad has a market capitalization of RM1.7b, and total annual CEO compensation was reported as RM545k for the year to June 2024. This means that the compensation hasn't changed much from last year. In particular, the salary of RM401.0k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Malaysia Industrials industry with market capitalizations between RM885m and RM3.5b, we discovered that the median CEO total compensation of that group was RM570k. From this we gather that Vivienne Cheng is paid around the median for CEOs in the industry.

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. It's interesting to note that Berjaya Corporation Berhad pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Berjaya Corporation Berhad's Growth Numbers

Berjaya Corporation Berhad's earnings per share (EPS) grew 102% per year over the last three years. It saw its revenue drop 1.9% over the last 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Berjaya Corporation Berhad Been A Good Investment?

Berjaya Corporation Berhad has generated a total shareholder return of 16% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same 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. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for Berjaya Corporation Berhad (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.