How Much Is WCT Holdings Berhad (KLSE:WCT) Paying Its CEO?

This article will reflect on the compensation paid to Tuck Lee who has served as CEO of WCT Holdings Berhad (KLSE:WCT) since 2017. This analysis will also assess whether WCT Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for WCT Holdings Berhad

How Does Total Compensation For Tuck Lee Compare With Other Companies In The Industry?

Our data indicates that WCT Holdings Berhad has a market capitalization of RM730m, and total annual CEO compensation was reported as RM3.2m for the year to December 2019. That's a slightly lower by 3.4% over the previous year. In particular, the salary of RM2.40m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the same industry with market caps ranging from RM405m to RM1.6b, we found that the median CEO total compensation was RM1.6m. This suggests that Tuck Lee is paid more than the median for the industry.

On an industry level, roughly 80% of total compensation represents salary and 20% is other remuneration. Our data reveals that WCT Holdings Berhad allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at WCT Holdings Berhad's Growth Numbers

WCT Holdings Berhad has reduced its earnings per share by 85% a year over the last three years. It saw its revenue drop 18% over the last year.

The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has WCT Holdings Berhad Been A Good Investment?

With a three year total loss of 62% for the shareholders, WCT Holdings Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, WCT Holdings Berhad is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

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 2 warning signs for WCT Holdings Berhad (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from WCT Holdings 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. 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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