A Look At Pasukhas Group Berhad's (KLSE:PASUKGB) CEO Remuneration

Thean Wan became the CEO of Pasukhas Group Berhad (KLSE:PASUKGB) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Pasukhas Group Berhad.

See our latest analysis for Pasukhas Group Berhad

Comparing Pasukhas Group Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Pasukhas Group Berhad has a market capitalization of RM79m, and reported total annual CEO compensation of RM349k for the year to December 2019. We note that's a decrease of 31% compared to last year. Notably, the salary which is RM279.6k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below RM815m, we found that the median total CEO compensation was RM154k. Accordingly, our analysis reveals that Pasukhas Group Berhad pays Thean Wan north of the industry median.

On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. Although there is a difference in how total compensation is set, Pasukhas Group Berhad more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Pasukhas Group Berhad's Growth

Over the last three years, Pasukhas Group Berhad has shrunk its earnings per share by 60% per year. In the last year, its revenue is down 68%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pasukhas Group Berhad Been A Good Investment?

Given the total shareholder loss of 42% over three years, many shareholders in Pasukhas Group Berhad are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Thean is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 5 warning signs (and 1 which is a bit concerning) in Pasukhas Group Berhad we think you should know about.

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.

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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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