How Much Is Eversendai Corporation Berhad (KLSE:SENDAI) Paying Its CEO?

The CEO of Eversendai Corporation Berhad (KLSE:SENDAI) is A. Nathan, 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 Eversendai Corporation Berhad.

View our latest analysis for Eversendai Corporation Berhad

Comparing Eversendai Corporation Berhad's CEO Compensation With the industry

According to our data, Eversendai Corporation Berhad has a market capitalization of RM176m, and paid its CEO total annual compensation worth RM363k over the year to December 2019. That's a slight decrease of 5.0% on the prior year. Notably, the salary of RM363k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under RM823m, the reported median total CEO compensation was RM935k. Accordingly, Eversendai Corporation Berhad pays its CEO under the industry median. Furthermore, A. Nathan directly owns RM125m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. Speaking on a company level, Eversendai Corporation Berhad prefers to tread along a traditional path, disbursing all compensation through a 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.

A Look at Eversendai Corporation Berhad's Growth Numbers

Eversendai Corporation Berhad has seen its earnings per share (EPS) increase by 24% a year over the past three years. Its revenue is down 29% over the previous 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Eversendai Corporation Berhad Been A Good Investment?

With a three year total loss of 73% for the shareholders, Eversendai Corporation Berhad would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Eversendai Corporation Berhad pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, A. is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Importantly though, the company has impressed with its EPS growth over three years. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for A. until investor returns are positive.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 2 warning signs for Eversendai Corporation Berhad that investors should look into moving forward.

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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