How Much Does Ekovest Berhad's (KLSE:EKOVEST) CEO Make?

This article will reflect on the compensation paid to Keng Lim who has served as CEO of Ekovest Berhad (KLSE:EKOVEST) since 2011. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ekovest Berhad.

Check out our latest analysis for Ekovest Berhad

Comparing Ekovest Berhad's CEO Compensation With the industry

Our data indicates that Ekovest Berhad has a market capitalization of RM1.2b, and total annual CEO compensation was reported as RM1.6m for the year to June 2020. We note that's a small decrease of 6.2% on last year. Notably, the salary which is RM864.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations ranging from RM810m to RM3.2b, the reported median CEO total compensation was RM1.8m. So it looks like Ekovest Berhad compensates Keng Lim in line with the median for the industry.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Ekovest Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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.

Ekovest Berhad's Growth

Over the last three years, Ekovest Berhad has shrunk its earnings per share by 24% per year. In the last year, its revenue is down 10%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Ekovest Berhad Been A Good Investment?

Since shareholders would have lost about 53% over three years, some Ekovest Berhad investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Keng is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for Ekovest Berhad (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. 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.
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