We Think Some Shareholders May Hesitate To Increase Kerjaya Prospek Group Berhad's (KLSE:KERJAYA) CEO Compensation

Key Insights

• Kerjaya Prospek Group Berhad's Annual General Meeting to take place on 5th of June
• Total pay for CEO Eng Tee includes RM900.0k salary
• The total compensation is 77% higher than the average for the industry
• Over the past three years, Kerjaya Prospek Group Berhad's EPS grew by 12% and over the past three years, the total shareholder return was 74%

Performance at Kerjaya Prospek Group Berhad (KLSE:KERJAYA) has been reasonably good and CEO Eng Tee has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 5th of June. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Kerjaya Prospek Group Berhad

How Does Total Compensation For Eng Tee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kerjaya Prospek Group Berhad has a market capitalization of RM2.3b, and reported total annual CEO compensation of RM1.3m for the year to December 2023. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at RM900.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the Malaysian Construction industry with market capitalizations between RM941m and RM3.8b, we discovered that the median CEO total compensation of that group was RM723k. Accordingly, our analysis reveals that Kerjaya Prospek Group Berhad pays Eng Tee north of the industry median.

Component	2023	2022	Proportion (2023)
Salary	RM900k	RM900k	70%
Other	RM382k	RM350k	30%
Total Compensation	RM1.3m	RM1.3m	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. Our data reveals that Kerjaya Prospek Group Berhad allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Kerjaya Prospek Group Berhad's Growth

Over the past three years, Kerjaya Prospek Group Berhad has seen its earnings per share (EPS) grow by 12% per year. It achieved revenue growth of 31% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Kerjaya Prospek Group Berhad Been A Good Investment?

Most shareholders would probably be pleased with Kerjaya Prospek Group Berhad for providing a total return of 74% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Kerjaya Prospek Group Berhad that you should be aware of before investing.

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.