We Think Some Shareholders May Hesitate To Increase Ecomate Holdings Berhad's (KLSE:ECOMATE) CEO Compensation

Key Insights

• Ecomate Holdings Berhad's Annual General Meeting to take place on 25th of August
• Total pay for CEO Jason Koh includes RM600.0k salary
• Total compensation is 1,821% above industry average
• Over the past three years, Ecomate Holdings Berhad's EPS fell by 47% and over the past three years, the total shareholder return was 126%

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The share price of Ecomate Holdings Berhad (KLSE:ECOMATE) has increased significantly over the past few years. However, the earnings growth has not kept up with the share price momentum, suggesting that some other factors may be driving the price direction. The upcoming AGM on 25th of August may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Ecomate Holdings Berhad

How Does Total Compensation For Jason Koh Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ecomate Holdings Berhad has a market capitalization of RM566m, and reported total annual CEO compensation of RM1.1m for the year to February 2025. There was no change in the compensation compared to last year. Notably, the salary which is RM600.0k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Malaysia Consumer Durables industry with market capitalizations below RM844m, reported a median total CEO compensation of RM57k. Accordingly, our analysis reveals that Ecomate Holdings Berhad pays Jason Koh north of the industry median. What's more, Jason Koh holds RM175m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Ecomate Holdings Berhad 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.

Ecomate Holdings Berhad's Growth

Ecomate Holdings Berhad has reduced its earnings per share by 47% a year over the last three years. It saw its revenue drop 3.0% over the last year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Ecomate Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 126% over three years, Ecomate Holdings Berhad has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Ecomate Holdings Berhad that investors should think about before committing capital to this stock.

Switching gears from Ecomate 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. 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.