What Can We Conclude About Naim Holdings Berhad's (KLSE:NAIM) CEO Pay?

The CEO of Naim Holdings Berhad (KLSE:NAIM) is Hasmi Bin Hasnan, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Naim Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Naim Holdings Berhad

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

Our data indicates that Naim Holdings Berhad has a market capitalization of RM381m, and total annual CEO compensation was reported as RM2.1m for the year to December 2019. This means that the compensation hasn't changed much from last year. Notably, the salary which is RM1.70m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM812m, the reported median total CEO compensation was RM935k. Hence, we can conclude that Hasmi Bin Hasnan is remunerated higher than the industry median. What's more, Hasmi Bin Hasnan holds RM43m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 79% of total compensation represents salary and 21% 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 total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Naim Holdings Berhad's Growth Numbers

Naim Holdings Berhad's earnings per share (EPS) grew 95% per year over the last three years. Its revenue is down 46% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Naim Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 38% over three years, many shareholders in Naim Holdings Berhad are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, Naim Holdings Berhad is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Hasmi is earning a very handsome sum.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Naim Holdings 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. 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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