Here's Why Sycal Ventures Berhad's (KLSE:SYCAL) CEO Is Unlikely to Expect A Pay Rise This Year

Key Insights

• Sycal Ventures Berhad's Annual General Meeting to take place on 28th of November
• CEO Yong Seow's total compensation includes salary of RM672.0k
• The total compensation is similar to the average for the industry
• Sycal Ventures Berhad's EPS grew by 37% over the past three years while total shareholder return over the past three years was 2.5%

Performance at Sycal Ventures Berhad (KLSE:SYCAL) has been reasonably good and CEO Yong Seow has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 28th of November, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Check out our latest analysis for Sycal Ventures Berhad

How Does Total Compensation For Yong Seow Compare With Other Companies In The Industry?

Our data indicates that Sycal Ventures Berhad has a market capitalization of RM85m, and total annual CEO compensation was reported as RM747k for the year to June 2024. This was the same amount the CEO received in the prior year. Notably, the salary which is RM672.0k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysian Construction industry with market capitalizations below RM893m, reported a median total CEO compensation of RM742k. So it looks like Sycal Ventures Berhad compensates Yong Seow in line with the median for the industry. What's more, Yong Seow holds RM7.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM672k	RM672k	90%
Other	RM75k	RM75k	10%
Total Compensation	RM747k	RM747k	100%

Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. Sycal Ventures Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Sycal Ventures Berhad's Growth Numbers

Over the past three years, Sycal Ventures Berhad has seen its earnings per share (EPS) grow by 37% per year. It achieved revenue growth of 6.3% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Sycal Ventures Berhad Been A Good Investment?

Sycal Ventures Berhad has generated a total shareholder return of 2.5% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Sycal Ventures Berhad you should be aware of, and 1 of them is potentially serious.

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.