Shareholders May Be More Conservative With UWC Berhad's (KLSE:UWC) CEO Compensation For Now

Under the guidance of CEO Chai Ng, UWC Berhad (KLSE:UWC) has performed reasonably well 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 09 January 2023. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for UWC Berhad

Comparing UWC Berhad's CEO Compensation With The Industry

According to our data, UWC Berhad has a market capitalization of RM4.4b, and paid its CEO total annual compensation worth RM1.9m over the year to July 2022. That's a fairly small increase of 7.1% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM914k.

On examining similar-sized companies in the Malaysian Machinery industry with market capitalizations between RM1.8b and RM7.0b, we discovered that the median CEO total compensation of that group was RM511k. Hence, we can conclude that Chai Ng is remunerated higher than the industry median. What's more, Chai Ng holds RM334m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	RM914k	RM804k	49%
Other	RM952k	RM939k	51%
Total Compensation	RM1.9m	RM1.7m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. UWC Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

UWC Berhad's Growth

UWC Berhad's earnings per share (EPS) grew 36% per year over the last three years. It achieved revenue growth of 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has UWC Berhad Been A Good Investment?

Boasting a total shareholder return of 296% over three years, UWC Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

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, 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.

Shareholders may want to check for free if UWC Berhad insiders are buying or selling shares.

Switching gears from UWC Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.