Shareholders May Not Be So Generous With Pansar Berhad's (KLSE:PANSAR) CEO Compensation And Here's Why

CEO Jason Tai has done a decent job of delivering relatively good performance at Pansar Berhad (KLSE:PANSAR) 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 01 September 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Pansar Berhad

Comparing Pansar Berhad's CEO Compensation With the industry

According to our data, Pansar Berhad has a market capitalization of RM299m, and paid its CEO total annual compensation worth RM1.6m over the year to March 2021. That's a fairly small increase of 4.7% over the previous year. We note that the salary portion, which stands at RM1.34m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below RM844m, reported a median total CEO compensation of RM50k. This suggests that Jason Tai is paid more than the median for the industry.

Component	2021	2020	Proportion (2021)
Salary	RM1.3m	RM1.2m	82%
Other	RM284k	RM337k	18%
Total Compensation	RM1.6m	RM1.6m	100%

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. Our data reveals that Pansar Berhad allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Pansar Berhad's Growth Numbers

Over the past three years, Pansar Berhad has seen its earnings per share (EPS) grow by 4.4% per year. In the last year, its revenue is down 10%.

We generally like to see a little revenue growth, but the modest EPS growth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Pansar Berhad Been A Good Investment?

Pansar Berhad has served shareholders reasonably well, with a total return of 21% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which can't be ignored) in Pansar Berhad we think you should know about.

Switching gears from Pansar Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.
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