How Much Is CAB Cakaran Corporation Berhad (KLSE:CAB) CEO Getting Paid?

Hoon Chuah has been the CEO of CAB Cakaran Corporation Berhad (KLSE:CAB) since 2011, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether CAB Cakaran Corporation Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for CAB Cakaran Corporation Berhad

How Does Total Compensation For Hoon Chuah Compare With Other Companies In The Industry?

At the time of writing, our data shows that CAB Cakaran Corporation Berhad has a market capitalization of RM307m, and reported total annual CEO compensation of RM1.1m for the year to September 2020. That's a slightly lower by 5.1% over the previous year. Notably, the salary which is RM806.0k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below RM809m, reported a median total CEO compensation of RM623k. Hence, we can conclude that Hoon Chuah is remunerated higher than the industry median. What's more, Hoon Chuah holds RM6.5m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Although there is a difference in how total compensation is set, CAB Cakaran Corporation Berhad more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

CAB Cakaran Corporation Berhad's Growth

Over the last three years, CAB Cakaran Corporation Berhad has shrunk its earnings per share by 66% per year. In the last year, its revenue is down 4.1%.

Overall this is not a very positive result for shareholders. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CAB Cakaran Corporation Berhad Been A Good Investment?

With a three year total loss of 49% for the shareholders, CAB Cakaran Corporation 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 we noted earlier, CAB Cakaran Corporation Berhad pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 7 warning signs for CAB Cakaran Corporation Berhad you should be aware of, and 2 of them make us uncomfortable.

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. 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.
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