We Think Federal International Holdings Berhad's (KLSE:FIHB) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Federal International Holdings Berhad will host its Annual General Meeting on 4th of December
• Salary of RM513.0k is part of CEO Wai Choy's total remuneration
• Total compensation is 732% above industry average
• Federal International Holdings Berhad's three-year loss to shareholders was 22% while its EPS was down 87% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at Federal International Holdings Berhad (KLSE:FIHB) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 4th of December. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Federal International Holdings Berhad

How Does Total Compensation For Wai Choy Compare With Other Companies In The Industry?

Our data indicates that Federal International Holdings Berhad has a market capitalization of RM54m, and total annual CEO compensation was reported as RM615k for the year to June 2025. That's a notable decrease of 8.6% on last year. Notably, the salary which is RM513.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysia Consumer Durables industry with market capitalizations below RM827m, we found that the median total CEO compensation was RM74k. Accordingly, our analysis reveals that Federal International Holdings Berhad pays Wai Choy north of the industry median. What's more, Wai Choy holds RM6.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 64% of total compensation out of all the companies we analyzed, while other remuneration made up 36% of the pie. Federal International Holdings Berhad is paying a higher share of its remuneration through a 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 Federal International Holdings Berhad's Growth Numbers

Over the last three years, Federal International Holdings Berhad has shrunk its earnings per share by 87% per year. It saw its revenue drop 30% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Federal International Holdings Berhad Been A Good Investment?

With a three year total loss of 22% for the shareholders, Federal International Holdings Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are a bit concerning) in Federal International Holdings Berhad we think you should know about.

Important note: Federal International Holdings Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.