Resintech Berhad's (KLSE:RESINTC) CEO Compensation Is Looking A Bit Stretched At The Moment

CEO Kim Poo Teh has done a decent job of delivering relatively good performance at Resintech Berhad (KLSE:RESINTC) 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 24 September 2021. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Resintech Berhad

How Does Total Compensation For Kim Poo Teh Compare With Other Companies In The Industry?

Our data indicates that Resintech Berhad has a market capitalization of RM87m, and total annual CEO compensation was reported as RM672k for the year to March 2021. We note that's a decrease of 14% compared to last year. In particular, the salary of RM614.3k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under RM832m, the reported median total CEO compensation was RM314k. Accordingly, our analysis reveals that Resintech Berhad pays Kim Poo Teh north of the industry median. Furthermore, Kim Poo Teh directly owns RM38m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	RM614k	RM720k	91%
Other	RM58k	RM62k	9%
Total Compensation	RM672k	RM782k	100%

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Resintech Berhad is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Resintech Berhad's Growth Numbers

Resintech Berhad's earnings per share (EPS) grew 46% per year over the last three years. It saw its revenue drop 1.2% over the last 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Resintech Berhad Been A Good Investment?

We think that the total shareholder return of 146%, over three years, would leave most Resintech Berhad shareholders smiling. 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.

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for Resintech Berhad (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

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.
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