Shareholders May Be A Bit More Conservative With Rekatech Capital Berhad's (KLSE:REKATECH) CEO Compensation For Now

Key Insights

• Rekatech Capital Berhad will host its Annual General Meeting on 18th of December
• Salary of RM216.0k is part of CEO Mooi Yow's total remuneration
• The overall pay is comparable to the industry average
• Over the past three years, Rekatech Capital Berhad's EPS grew by 67% and over the past three years, the total loss to shareholders 61%

Shareholders of Rekatech Capital Berhad (KLSE:REKATECH) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 18th of December. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Rekatech Capital Berhad

How Does Total Compensation For Mooi Yow Compare With Other Companies In The Industry?

According to our data, Rekatech Capital Berhad has a market capitalization of RM27m, and paid its CEO total annual compensation worth RM266k over the year to June 2024. That's slightly lower by 5.0% over the previous year. Notably, the salary which is RM216.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysia Professional Services industry with market capitalizations below RM887m, we found that the median total CEO compensation was RM321k. This suggests that Rekatech Capital Berhad remunerates its CEO largely in line with the industry average. Moreover, Mooi Yow also holds RM3.5m worth of Rekatech Capital Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	RM216k	RM232k	81%
Other	RM50k	RM48k	19%
Total Compensation	RM266k	RM280k	100%

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Rekatech Capital Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Rekatech Capital Berhad's Growth Numbers

Rekatech Capital Berhad's earnings per share (EPS) grew 67% per year over the last three years. In the last year, its revenue is up 52%.

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. 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 Rekatech Capital Berhad Been A Good Investment?

The return of -61% over three years would not have pleased Rekatech Capital Berhad shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which are significant) in Rekatech Capital Berhad we think you should know about.

Switching gears from Rekatech Capital 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.