How Much Is Inta Bina Group Berhad (KLSE:INTA) Paying Its CEO?

Ooi Joo Lim is the CEO of Inta Bina Group Berhad (KLSE:INTA), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Inta Bina Group Berhad

How Does Total Compensation For Ooi Joo Lim Compare With Other Companies In The Industry?

According to our data, Inta Bina Group Berhad has a market capitalization of RM169m, and paid its CEO total annual compensation worth RM588k over the year to December 2019. We note that's an increase of 14% above last year. We note that the salary portion, which stands at RM393.6k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below RM811m, reported a median total CEO compensation of RM939k. That is to say, Ooi Joo Lim is paid under the industry median. What's more, Ooi Joo Lim holds RM16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. Inta Bina Group Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Inta Bina Group Berhad's Growth

Over the last three years, Inta Bina Group Berhad has shrunk its earnings per share by 22% per year. Its revenue is down 33% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Inta Bina Group Berhad Been A Good Investment?

With a three year total loss of 6.0% for the shareholders, Inta Bina Group Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Inta Bina Group Berhad is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Ooi Joo is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Inta Bina Group Berhad that investors should think about before committing capital to this stock.

Important note: Inta Bina Group 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. 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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