Shareholders Will Probably Hold Off On Increasing Jentayu Sustainables Berhad's (KLSE:JSB) CEO Compensation For The Time Being

Key Insights

• Jentayu Sustainables Berhad to hold its Annual General Meeting on 27 December 2022
• CEO Jeefri bin Muhamad Yusup's total compensation includes salary of RM960.9k
• Total compensation is 466% above industry average
• Jentayu Sustainables Berhad's EPS grew by 107% over the past three years while total shareholder return over the past three years was 773%

CEO Jeefri bin Muhamad Yusup has done a decent job of delivering relatively good performance at Jentayu Sustainables Berhad (KLSE:JSB) recently. As shareholders go into the upcoming AGM on 27 December 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Jentayu Sustainables Berhad

Comparing Jentayu Sustainables Berhad's CEO Compensation With The Industry

According to our data, Jentayu Sustainables Berhad has a market capitalization of RM247m, and paid its CEO total annual compensation worth RM1.1m over the year to June 2022. That's a notable increase of 28% on last year. We note that the salary portion, which stands at RM960.9k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Trade Distributors industry with market capitalizations below RM887m, reported a median total CEO compensation of RM190k. Hence, we can conclude that Jeefri bin Muhamad Yusup is remunerated higher than the industry median. What's more, Jeefri bin Muhamad Yusup holds RM8.4m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	RM961k	RM751k	89%
Other	RM115k	RM90k	11%
Total Compensation	RM1.1m	RM841k	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Jentayu Sustainables Berhad is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Jentayu Sustainables Berhad's Growth

Jentayu Sustainables Berhad has seen its earnings per share (EPS) increase by 107% a year over the past three years. Its revenue is up 178% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Jentayu Sustainables Berhad Been A Good Investment?

Boasting a total shareholder return of 773% over three years, Jentayu Sustainables Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 3 warning signs for Jentayu Sustainables Berhad (2 can't be ignored!) that you should be aware of before investing here.

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.