Increases to CEO Compensation Might Be Put On Hold For Now at Asia File Corporation Bhd. (KLSE:ASIAFLE)

Key Insights

• Asia File Corporation Bhd to hold its Annual General Meeting on 29th of September
• CEO Soon Lim's total compensation includes salary of RM1.45m
• The total compensation is 397% higher than the average for the industry
• Over the past three years, Asia File Corporation Bhd's EPS grew by 13% and over the past three years, the total shareholder return was 9.7%

CEO Soon Lim has done a decent job of delivering relatively good performance at Asia File Corporation Bhd. (KLSE:ASIAFLE) 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 29th of September. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Asia File Corporation Bhd

Comparing Asia File Corporation Bhd.'s CEO Compensation With The Industry

According to our data, Asia File Corporation Bhd. has a market capitalization of RM379m, and paid its CEO total annual compensation worth RM2.8m over the year to March 2023. We note that's an increase of 23% above last year. We note that the salary of RM1.45m makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar-sized companies in the Malaysian Commercial Services industry with market capitalizations below RM936m, we found that the median total CEO compensation was RM568k. This suggests that Soon Lim is paid more than the median for the industry. What's more, Soon Lim holds RM183m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	RM1.5m	RM1.4m	51%
Other	RM1.4m	RM915k	49%
Total Compensation	RM2.8m	RM2.3m	100%

On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Asia File Corporation Bhd sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Asia File Corporation Bhd.'s Growth Numbers

Asia File Corporation Bhd.'s earnings per share (EPS) grew 13% per year over the last three years. It saw its revenue drop 7.4% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Asia File Corporation Bhd. Been A Good Investment?

Asia File Corporation Bhd. has not done too badly by shareholders, with a total return of 9.7%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 2 warning signs for Asia File Corporation Bhd you should be aware of, and 1 of them can't be ignored.

Switching gears from Asia File Corporation Bhd, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.