We Think Shareholders Will Probably Be Generous With Pesona Metro Holdings Berhad's (KLSE:PESONA) CEO Compensation

Key Insights

• Pesona Metro Holdings Berhad's Annual General Meeting to take place on 25th of June
• Total pay for CEO Hock Wie includes RM624.0k salary
• Total compensation is similar to the industry average
• Pesona Metro Holdings Berhad's EPS grew by 113% over the past three years while total shareholder return over the past three years was 43%

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It would be hard to discount the role that CEO Hock Wie has played in delivering the impressive results at Pesona Metro Holdings Berhad (KLSE:PESONA) recently. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 25th of June. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for Pesona Metro Holdings Berhad

Comparing Pesona Metro Holdings Berhad's CEO Compensation With The Industry

According to our data, Pesona Metro Holdings Berhad has a market capitalization of RM198m, and paid its CEO total annual compensation worth RM890k over the year to December 2024. This was the same as last year. We note that the salary portion, which stands at RM624.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Malaysian Construction industry with market capitalizations under RM850m, the reported median total CEO compensation was RM739k. So it looks like Pesona Metro Holdings Berhad compensates Hock Wie in line with the median for the industry.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. It's interesting to note that Pesona Metro Holdings Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Pesona Metro Holdings Berhad's Growth Numbers

Over the past three years, Pesona Metro Holdings Berhad has seen its earnings per share (EPS) grow by 113% per year. In the last year, its revenue is up 22%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pesona Metro Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 43% over three years, Pesona Metro Holdings Berhad has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Pesona Metro Holdings Berhad (1 is potentially serious!) that you should be aware of before investing here.

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. 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.