How Is Apollo Food Holdings Berhad's (KLSE:APOLLO) CEO Paid Relative To Peers?

This article will reflect on the compensation paid to Kim Liang who has served as CEO of Apollo Food Holdings Berhad (KLSE:APOLLO) since 2017. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Apollo Food Holdings Berhad

Comparing Apollo Food Holdings Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Apollo Food Holdings Berhad has a market capitalization of RM302m, and reported total annual CEO compensation of RM2.6m for the year to April 2020. That's a modest increase of 4.3% on the prior year. Notably, the salary which is RM2.23m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM813m, the reported median total CEO compensation was RM663k. This suggests that Kim Liang is paid more than the median for the industry. What's more, Kim Liang holds RM848k worth of shares in the company in their own name.

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. It's interesting to note that Apollo Food Holdings Berhad pays out a greater portion of remuneration through salary, compared to the 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 Apollo Food Holdings Berhad's Growth Numbers

Over the last three years, Apollo Food Holdings Berhad has not seen its earnings per share change much, though they have deteriorated slightly. Its revenue is down 3.2% over the previous year.

The lack of EPS growth is certainly unimpressive. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Apollo Food Holdings Berhad Been A Good Investment?

With a three year total loss of 0.4% for the shareholders, Apollo Food Holdings Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Kim is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

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 3 warning signs for Apollo Food Holdings Berhad (1 is a bit concerning!) that you should be aware of before investing here.

Important note: Apollo Food Holdings Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading Apollo Food Holdings Berhad or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.