Shareholders May Be More Conservative With Insas Berhad's (KLSE:INSAS) CEO Compensation For Now

Key Insights

• Insas Berhad will host its Annual General Meeting on 28th of November
• Salary of RM420.0k is part of CEO Gian Wong's total remuneration
• The total compensation is 189% higher than the average for the industry
• Insas Berhad's total shareholder return over the past three years was 18% while its EPS was down 24% over the past three years

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The share price of Insas Berhad (KLSE:INSAS) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 28th of November may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Insas Berhad

How Does Total Compensation For Gian Wong Compare With Other Companies In The Industry?

Our data indicates that Insas Berhad has a market capitalization of RM564m, and total annual CEO compensation was reported as RM486k for the year to June 2025. There was no change in the compensation compared to last year. We note that the salary portion, which stands at RM420.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Malaysia Capital Markets industry with market capitalizations below RM829m, we found that the median total CEO compensation was RM168k. Accordingly, our analysis reveals that Insas Berhad pays Gian Wong north of the industry median. What's more, Gian Wong holds RM508k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2025	2024	Proportion (2025)
Salary	RM420k	RM420k	86%
Other	RM66k	RM66k	14%
Total Compensation	RM486k	RM486k	100%

On an industry level, around 91% of total compensation represents salary and 9% is other remuneration. Although there is a difference in how total compensation is set, Insas Berhad more or less reflects the market in terms of setting the salary. 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.

Insas Berhad's Growth

Over the last three years, Insas Berhad has shrunk its earnings per share by 24% per year. It saw its revenue drop 19% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Insas Berhad Been A Good Investment?

Insas Berhad has served shareholders reasonably well, with a total return of 18% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

Despite the positive returns on shareholders' investments, the fact that earnings have failed to grow makes us skeptical about whether these returns will continue. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Insas Berhad you should be aware of, and 1 of them doesn't sit too well with us.

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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.