Shareholders May Be More Conservative With Perdana Petroleum Berhad's (KLSE:PERDANA) CEO Compensation For Now
Key Insights
- Perdana Petroleum Berhad will host its Annual General Meeting on 21st of May
- Salary of RM926.1k is part of CEO Jamalludin Bin Obeng's total remuneration
- The overall pay is 120% above the industry average
- Perdana Petroleum Berhad's EPS grew by 123% over the past three years while total shareholder return over the past three years was 64%
Under the guidance of CEO Jamalludin Bin Obeng, Perdana Petroleum Berhad (KLSE:PERDANA) has performed reasonably well recently. As shareholders go into the upcoming AGM on 21st of May, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.
Check out our latest analysis for Perdana Petroleum Berhad
How Does Total Compensation For Jamalludin Bin Obeng Compare With Other Companies In The Industry?
Our data indicates that Perdana Petroleum Berhad has a market capitalization of RM457m, and total annual CEO compensation was reported as RM1.9m for the year to December 2024. We note that's an increase of 25% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM926k.
In comparison with other companies in the Malaysian Energy Services industry with market capitalizations under RM858m, the reported median total CEO compensation was RM843k. This suggests that Jamalludin Bin Obeng is paid more than the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | RM926k | RM882k | 50% |
| Other | RM931k | RM601k | 50% |
| Total Compensation | RM1.9m | RM1.5m | 100% |
On an industry level, roughly 52% of total compensation represents salary and 48% is other remuneration. There isn't a significant difference between Perdana Petroleum Berhad and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Perdana Petroleum Berhad's Growth Numbers
Over the past three years, Perdana Petroleum Berhad has seen its earnings per share (EPS) grow by 123% per year. Its revenue is up 40% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Perdana Petroleum Berhad Been A Good Investment?
Most shareholders would probably be pleased with Perdana Petroleum Berhad for providing a total return of 64% 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.
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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Perdana Petroleum Berhad that investors should think about before committing capital to this stock.
Switching gears from Perdana Petroleum 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.