Shareholders Will Likely Find AEON Credit Service (M) Berhad's (KLSE:AEONCR) CEO Compensation Acceptable

Key Insights

• AEON Credit Service (M) Berhad's Annual General Meeting to take place on 25th of June
• Salary of RM648.0k is part of CEO Daisuke Maeda's total remuneration
• The overall pay is 71% below the industry average
• AEON Credit Service (M) Berhad's EPS grew by 1.4% over the past three years while total shareholder loss over the past three years was 3.2%

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Performance at AEON Credit Service (M) Berhad (KLSE:AEONCR) has been rather uninspiring recently and shareholders may be wondering how CEO Daisuke Maeda plans to fix this. They will get a chance to exercise their voting power to influence the future direction of the company in the next AGM on 25th of June. Voting on executive pay could be a powerful way to influence management, as studies have shown that the right compensation incentives impact company performance. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

See our latest analysis for AEON Credit Service (M) Berhad

How Does Total Compensation For Daisuke Maeda Compare With Other Companies In The Industry?

At the time of writing, our data shows that AEON Credit Service (M) Berhad has a market capitalization of RM2.9b, and reported total annual CEO compensation of RM1.4m for the year to February 2025. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM648k.

For comparison, other companies in the Malaysia Consumer Finance industry with market capitalizations ranging between RM1.7b and RM6.8b had a median total CEO compensation of RM4.7m. This suggests that Daisuke Maeda is paid below the industry median.

On an industry level, roughly 69% of total compensation represents salary and 31% is other remuneration. It's interesting to note that AEON Credit Service (M) Berhad allocates a smaller portion of compensation to salary 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.

AEON Credit Service (M) Berhad's Growth

AEON Credit Service (M) Berhad has seen its earnings per share (EPS) increase by 1.4% a year over the past three years. It achieved revenue growth of 3.1% over the last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has AEON Credit Service (M) Berhad Been A Good Investment?

With a three year total loss of 3.2% for the shareholders, AEON Credit Service (M) Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Flat earnings growth may also be to blame for the uninspiring share price performance. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for AEON Credit Service (M) Berhad (of which 1 makes us a bit uncomfortable!) that you should know about in order to have a holistic understanding of the stock.

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.