How Does Supercomnet Technologies Berhad's (KLSE:SCOMNET) CEO Pay Compare With Company Performance?

The CEO of Supercomnet Technologies Berhad (KLSE:SCOMNET) is James Shiue, and this article examines 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 Supercomnet Technologies Berhad.

See our latest analysis for Supercomnet Technologies Berhad

Comparing Supercomnet Technologies Berhad's CEO Compensation With the industry

Our data indicates that Supercomnet Technologies Berhad has a market capitalization of RM1.5b, and total annual CEO compensation was reported as RM351k for the year to December 2019. We note that's a small decrease of 4.9% on last year. Notably, the salary which is RM258.4k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from RM823m to RM3.3b, we found that the median CEO total compensation was RM441k. This suggests that Supercomnet Technologies Berhad remunerates its CEO largely in line with the industry average. Furthermore, James Shiue directly owns RM443m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Our data reveals that Supercomnet Technologies Berhad allocates salary more or less in line with the wider market. 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.

A Look at Supercomnet Technologies Berhad's Growth Numbers

Supercomnet Technologies Berhad's earnings per share (EPS) grew 45% per year over the last three years. In the last year, its revenue is up 11%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Supercomnet Technologies Berhad Been A Good Investment?

We think that the total shareholder return of 789%, over three years, would leave most Supercomnet Technologies Berhad shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Supercomnet Technologies Berhad is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Investors would surely be happy to see that returns have been great, and that EPS is up. Indeed, many might consider that James is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Supercomnet Technologies Berhad that you should be aware of before investing.

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. 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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