It's Unlikely That Powerwell Holdings Berhad's (KLSE:PWRWELL) CEO Will See A Huge Pay Rise This Year

Key Insights

• Powerwell Holdings Berhad to hold its Annual General Meeting on 13th of September
• Total pay for CEO Jason Tham includes RM706.0k salary
• The overall pay is 1,248% above the industry average
• Powerwell Holdings Berhad's EPS grew by 113% over the past three years while total shareholder return over the past three years was 86%

Under the guidance of CEO Jason Tham, Powerwell Holdings Berhad (KLSE:PWRWELL) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 13th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Powerwell Holdings Berhad

Comparing Powerwell Holdings Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that Powerwell Holdings Berhad has a market capitalization of RM221m, and reported total annual CEO compensation of RM969k for the year to March 2024. This was the same amount the CEO received in the prior year. We note that the salary portion, which stands at RM706.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Electrical industry with market capitalizations below RM866m, reported a median total CEO compensation of RM72k. Hence, we can conclude that Jason Tham is remunerated higher than the industry median. Moreover, Jason Tham also holds RM2.9m worth of Powerwell Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2024	Proportion (2024)
Salary	RM706k	RM706k	73%
Other	RM263k	RM263k	27%
Total Compensation	RM969k	RM969k	100%

Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Although there is a difference in how total compensation is set, Powerwell Holdings Berhad more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Powerwell Holdings Berhad's Growth

Over the past three years, Powerwell Holdings Berhad has seen its earnings per share (EPS) grow by 113% per year. In the last year, its revenue is down 8.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Powerwell Holdings Berhad Been A Good Investment?

We think that the total shareholder return of 86%, over three years, would leave most Powerwell Holdings Berhad shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 1 which doesn't sit too well with us) in Powerwell Holdings Berhad we think you should know about.

Important note: Powerwell Holdings Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.