How Much Is Niche Capital Emas Holdings Berhad (KLSE:NICE) CEO Getting Paid?

This article will reflect on the compensation paid to Julian Foo who has served as CEO of Niche Capital Emas Holdings Berhad (KLSE:NICE) since 2017. This analysis will also assess whether Niche Capital Emas Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Niche Capital Emas Holdings Berhad

How Does Total Compensation For Julian Foo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Niche Capital Emas Holdings Berhad has a market capitalization of RM165m, and reported total annual CEO compensation of RM313k for the year to June 2020. We note that's a decrease of 22% compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth RM313k.

On comparing similar-sized companies in the industry with market capitalizations below RM809m, we found that the median total CEO compensation was RM564k. This suggests that Julian Foo is paid below the industry median. Furthermore, Julian Foo directly owns RM48m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. On a company level, Niche Capital Emas Holdings Berhad prefers to reward its CEO through a salary, opting not to pay Julian Foo through non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Niche Capital Emas Holdings Berhad's Growth

Niche Capital Emas Holdings Berhad has seen its earnings per share (EPS) increase by 57% a year over the past three years. It achieved revenue growth of 112% over the last year.

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 Niche Capital Emas Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 267% over three years, Niche Capital Emas 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.

In Summary...

Niche Capital Emas Holdings Berhad pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As we touched on above, Niche Capital Emas Holdings Berhad is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 5 warning signs for Niche Capital Emas Holdings Berhad (1 is potentially serious!) that you should be aware of before investing here.

Important note: Niche Capital Emas 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. 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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