It's Unlikely That Deleum Berhad's (KLSE:DELEUM) CEO Will See A Huge Pay Rise This Year
Key Insights
- Deleum Berhad to hold its Annual General Meeting on 22nd of May
- Total pay for CEO Ramanrao Bin Abdullah includes RM1.23m salary
- The total compensation is 182% higher than the average for the industry
- Over the past three years, Deleum Berhad's EPS grew by 57% and over the past three years, the total shareholder return was 166%
CEO Ramanrao Bin Abdullah has done a decent job of delivering relatively good performance at Deleum Berhad (KLSE:DELEUM) recently. 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 22nd of May. However, some shareholders may still want to keep CEO compensation within reason.
Check out our latest analysis for Deleum Berhad
Comparing Deleum Berhad's CEO Compensation With The Industry
Our data indicates that Deleum Berhad has a market capitalization of RM626m, and total annual CEO compensation was reported as RM2.4m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. In particular, the salary of RM1.23m, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the Malaysian Energy Services industry with market capitalizations under RM857m, the reported median total CEO compensation was RM848k. Hence, we can conclude that Ramanrao Bin Abdullah is remunerated higher than the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | RM1.2m | RM1.8m | 52% |
| Other | RM1.2m | RM516k | 48% |
| Total Compensation | RM2.4m | RM2.3m | 100% |
Speaking on an industry level, nearly 52% of total compensation represents salary, while the remainder of 48% is other remuneration. Deleum Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Deleum Berhad's Growth
Over the past three years, Deleum Berhad has seen its earnings per share (EPS) grow by 57% per year. In the last year, its revenue is up 15%.
This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.
Has Deleum Berhad Been A Good Investment?
Most shareholders would probably be pleased with Deleum Berhad for providing a total return of 166% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 2 warning signs for Deleum Berhad (1 is significant!) that you should be aware of before investing here.
Switching gears from Deleum 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.
Valuation is complex, but we're here to simplify it.
Discover if Deleum Berhad might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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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.