We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Naim Holdings Berhad's (KLSE:NAIM) CEO For Now

Key Insights

• Naim Holdings Berhad to hold its Annual General Meeting on 27th of May
• Total pay for CEO Hasmi Bin Hasnan includes RM1.70m salary
• Total compensation is 195% above industry average
• Naim Holdings Berhad's EPS grew by 125% over the past three years while total shareholder return over the past three years was 75%

We check all companies for important risks. See what we found for Naim Holdings Berhad in our free report.

Under the guidance of CEO Hasmi Bin Hasnan, Naim Holdings Berhad (KLSE:NAIM) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of May. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for Naim Holdings Berhad

How Does Total Compensation For Hasmi Bin Hasnan Compare With Other Companies In The Industry?

According to our data, Naim Holdings Berhad has a market capitalization of RM463m, and paid its CEO total annual compensation worth RM2.2m over the year to December 2024. That's a fairly small increase of 6.6% over the previous year. We note that the salary portion, which stands at RM1.70m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Malaysian Construction industry with market capitalizations under RM859m, the reported median total CEO compensation was RM743k. Hence, we can conclude that Hasmi Bin Hasnan is remunerated higher than the industry median. Furthermore, Hasmi Bin Hasnan directly owns RM52m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	RM1.7m	RM1.7m	77%
Other	RM500k	RM364k	23%
Total Compensation	RM2.2m	RM2.1m	100%

Speaking on an industry level, nearly 84% of total compensation represents salary, while the remainder of 16% is other remuneration. There isn't a significant difference between Naim Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Naim Holdings Berhad's Growth

Naim Holdings Berhad has seen its earnings per share (EPS) increase by 125% a year over the past three years. In the last year, its revenue is up 57%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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 Naim Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 75% over three years, Naim Holdings 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.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

So you may want to check if insiders are buying Naim Holdings Berhad shares with their own money (free access).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.