Shareholders May Be More Conservative With Petra Energy Berhad's (KLSE:PENERGY) CEO Compensation For Now

Key Insights

• Petra Energy Berhad will host its Annual General Meeting on 26th of May
• Total pay for CEO Anthony bin Bujang includes RM1.40m salary
• The total compensation is 167% higher than the average for the industry
• Petra Energy Berhad's EPS grew by 64% over the past three years while total shareholder return over the past three years was 100%

Our free stock report includes 3 warning signs investors should be aware of before investing in Petra Energy Berhad. Read for free now.

CEO Anthony bin Bujang has done a decent job of delivering relatively good performance at Petra Energy Berhad (KLSE:PENERGY) 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 26th of May. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Petra Energy Berhad

Comparing Petra Energy Berhad's CEO Compensation With The Industry

Our data indicates that Petra Energy Berhad has a market capitalization of RM395m, and total annual CEO compensation was reported as RM2.3m for the year to December 2024. We note that's an increase of 27% above last year. Notably, the salary which is RM1.40m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysian Energy Services industry with market capitalizations below RM858m, we found that the median total CEO compensation was RM848k. Accordingly, our analysis reveals that Petra Energy Berhad pays Anthony bin Bujang north of the industry median.

On an industry level, around 52% of total compensation represents salary and 48% is other remuneration. According to our research, Petra Energy Berhad has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

A Look at Petra Energy Berhad's Growth Numbers

Petra Energy Berhad has seen its earnings per share (EPS) increase by 64% a year over the past three years. It saw its revenue drop 9.8% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Petra Energy Berhad Been A Good Investment?

We think that the total shareholder return of 100%, over three years, would leave most Petra Energy Berhad shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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. That's why we did our research, and identified 3 warning signs for Petra Energy Berhad (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.