How Much is Mudajaya Group Berhad's (KLSE:MUDAJYA) CEO Getting Paid?

This article will reflect on the compensation paid to James Wong who has served as CEO of Mudajaya Group Berhad (KLSE:MUDAJYA) since 2015. This analysis will also assess whether Mudajaya Group Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Mudajaya Group Berhad

How Does Total Compensation For James Wong Compare With Other Companies In The Industry?

According to our data, Mudajaya Group Berhad has a market capitalization of RM188m, and paid its CEO total annual compensation worth RM839k over the year to December 2019. That's a slightly lower by 6.3% over the previous year. In particular, the salary of RM600.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM815m, we found that the median total CEO compensation was RM901k. So it looks like Mudajaya Group Berhad compensates James Wong in line with the median for the industry.

On an industry level, around 79% of total compensation represents salary and 21% is other remuneration. Mudajaya Group Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Mudajaya Group Berhad's Growth

Mudajaya Group Berhad has seen its earnings per share (EPS) increase by 37% a year over the past three years. Its revenue is down 24% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Mudajaya Group Berhad Been A Good Investment?

With a three year total loss of 69% for the shareholders, Mudajaya Group Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, James is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. However, EPS growth is positive over the same time frame. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

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 4 warning signs for Mudajaya Group Berhad (of which 1 is a bit unpleasant!) 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. 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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