This Is The Reason Why We Think AEON Credit Service (M) Berhad's (KLSE:AEONCR) CEO Deserves A Bump Up To Their Compensation

Key Insights

• AEON Credit Service (M) Berhad's Annual General Meeting to take place on 20th of June
• Total pay for CEO Daisuke Maeda includes RM624.0k salary
• The total compensation is 51% less than the average for the industry
• AEON Credit Service (M) Berhad's total shareholder return over the past three years was 38% while its EPS grew by 23% over the past three years

The impressive results at AEON Credit Service (M) Berhad (KLSE:AEONCR) recently will be great news for shareholders. At the upcoming AGM on 20th of June, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

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

Comparing AEON Credit Service (M) Berhad's CEO Compensation With The Industry

Our data indicates that AEON Credit Service (M) Berhad has a market capitalization of RM3.8b, and total annual CEO compensation was reported as RM1.4m for the year to February 2024. That's a fairly small increase of 7.8% over the previous year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM624k.

For comparison, other companies in the Malaysia Consumer Finance industry with market capitalizations ranging between RM1.9b and RM7.5b had a median total CEO compensation of RM2.8m. In other words, AEON Credit Service (M) Berhad pays its CEO lower than the industry median.

Component	2024	2023	Proportion (2024)
Salary	RM624k	RM600k	45%
Other	RM763k	RM687k	55%
Total Compensation	RM1.4m	RM1.3m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. In AEON Credit Service (M) Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

AEON Credit Service (M) Berhad's Growth

AEON Credit Service (M) Berhad's earnings per share (EPS) grew 23% per year over the last three years. Its revenue is up 27% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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?

Most shareholders would probably be pleased with AEON Credit Service (M) Berhad for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for AEON Credit Service (M) Berhad (1 doesn't sit too well with us!) that you should be aware of before investing here.

Switching gears from AEON Credit Service (M) Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com