Shareholders Will Probably Hold Off On Increasing Yinson Holdings Berhad's (KLSE:YINSON) CEO Compensation For The Time Being

Key Insights

• Yinson Holdings Berhad will host its Annual General Meeting on 25th of July
• Salary of RM4.38m is part of CEO Chern Lim's total remuneration
• The total compensation is 493% higher than the average for the industry
• Yinson Holdings Berhad's total shareholder return over the past three years was 25% while its EPS grew by 46% over the past three years

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Performance at Yinson Holdings Berhad (KLSE:YINSON) has been reasonably good and CEO Chern Lim has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 25th of July. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Yinson Holdings Berhad

How Does Total Compensation For Chern Lim Compare With Other Companies In The Industry?

Our data indicates that Yinson Holdings Berhad has a market capitalization of RM7.0b, and total annual CEO compensation was reported as RM9.6m for the year to January 2025. That's a notable increase of 13% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM4.4m.

In comparison with other companies in the Malaysian Energy Services industry with market capitalizations ranging from RM4.2b to RM14b, the reported median CEO total compensation was RM1.6m. Hence, we can conclude that Chern Lim is remunerated higher than the industry median. Moreover, Chern Lim also holds RM12m worth of Yinson Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 51% of total compensation represents salary and 49% is other remuneration. Yinson Holdings Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Yinson Holdings Berhad's Growth

Yinson Holdings Berhad's earnings per share (EPS) grew 46% per year over the last three years. Its revenue is down 39% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Yinson Holdings Berhad Been A Good Investment?

Yinson Holdings Berhad has generated a total shareholder return of 25% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Yinson Holdings Berhad you should be aware of, and 1 of them is concerning.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.