How Much Does Fima Corporation Berhad's (KLSE:FIMACOR) CEO Make?

Roslan bin Hamir became the CEO of Fima Corporation Berhad (KLSE:FIMACOR) in 1999, and we think it's a good time to look at 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 Fima Corporation Berhad.

Check out our latest analysis for Fima Corporation Berhad

Comparing Fima Corporation Berhad's CEO Compensation With the industry

According to our data, Fima Corporation Berhad has a market capitalization of RM429m, and paid its CEO total annual compensation worth RM660k over the year to March 2020. That is, the compensation was roughly the same as last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM308k.

On comparing similar-sized companies in the industry with market capitalizations below RM810m, we found that the median total CEO compensation was RM478k. Hence, we can conclude that Roslan bin Hamir is remunerated higher than the industry median. Furthermore, Roslan bin Hamir directly owns RM1.1m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. In Fima Corporation Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Fima Corporation Berhad's Growth Numbers

Over the last three years, Fima Corporation Berhad has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 1.4%.

Few shareholders would be pleased to read that EPS have declined. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fima Corporation Berhad Been A Good Investment?

With a total shareholder return of 8.1% over three years, Fima Corporation Berhad has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Roslan is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. While shareholder returns are acceptable, they don't delight. So you may want to delve deeper, because we don't think the amount Roslan makes is justifiable.

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 4 warning signs for Fima Corporation Berhad you should be aware of, and 1 of them shouldn't be ignored.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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