We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Emico Holdings Berhad's (KLSE:EMICO) CEO For Now

Performance at Emico Holdings Berhad (KLSE:EMICO) has been reasonably good and CEO Francis Lim has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 22 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Emico Holdings Berhad

Comparing Emico Holdings Berhad's CEO Compensation With The Industry

According to our data, Emico Holdings Berhad has a market capitalization of RM38m, and paid its CEO total annual compensation worth RM692k over the year to March 2022. We note that's an increase of 71% above last year. We note that the salary portion, which stands at RM582.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below RM905m, reported a median total CEO compensation of RM92k. Hence, we can conclude that Francis Lim is remunerated higher than the industry median. Furthermore, Francis Lim directly owns RM7.7m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	RM583k	RM307k	84%
Other	RM109k	RM99k	16%
Total Compensation	RM692k	RM406k	100%

On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. Emico Holdings 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.

Emico Holdings Berhad's Growth

Emico Holdings Berhad has reduced its earnings per share by 85% a year over the last three years. Its revenue is up 40% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Emico Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 91% over three years, Emico Holdings Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

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. That's why we did our research, and identified 3 warning signs for Emico Holdings Berhad (of which 2 are potentially serious!) that you should know about in order to have a holistic understanding of the stock.

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. 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.