It's Unlikely That Poh Kong Holdings Berhad's (KLSE:POHKONG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Poh Kong Holdings Berhad to hold its Annual General Meeting on 15th of January
• Salary of RM583.0k is part of CEO Eddie Choon's total remuneration
• Total compensation is 654% above industry average
• Poh Kong Holdings Berhad's EPS grew by 63% over the past three years while total shareholder return over the past three years was 30%

Performance at Poh Kong Holdings Berhad (KLSE:POHKONG) has been reasonably good and CEO Eddie Choon has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 15th of January. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Poh Kong Holdings Berhad

How Does Total Compensation For Eddie Choon Compare With Other Companies In The Industry?

At the time of writing, our data shows that Poh Kong Holdings Berhad has a market capitalization of RM398m, and reported total annual CEO compensation of RM6.1m for the year to July 2024. Notably, that's an increase of 28% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at RM583k.

For comparison, other companies in the Malaysia Luxury industry with market capitalizations below RM901m, reported a median total CEO compensation of RM811k. This suggests that Eddie Choon is paid more than the median for the industry. What's more, Eddie Choon holds RM11m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM583k	RM1.8m	10%
Other	RM5.5m	RM3.0m	90%
Total Compensation	RM6.1m	RM4.8m	100%

Talking in terms of the industry, salary represented approximately 95% of total compensation out of all the companies we analyzed, while other remuneration made up 5% of the pie. In Poh Kong Holdings Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Poh Kong Holdings Berhad's Growth Numbers

Over the past three years, Poh Kong Holdings Berhad has seen its earnings per share (EPS) grow by 63% per year. In the last year, its revenue is up 11%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Poh Kong Holdings Berhad Been A Good Investment?

Poh Kong Holdings Berhad has served shareholders reasonably well, with a total return of 30% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Poh Kong Holdings Berhad that investors should look into moving forward.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.