Shareholders Will Probably Hold Off On Increasing CAB Cakaran Corporation Berhad's (KLSE:CAB) CEO Compensation For The Time Being

Key Insights

• CAB Cakaran Corporation Berhad to hold its Annual General Meeting on 25th of March
• Salary of RM963.0k is part of CEO Hoon Chuah's total remuneration
• Total compensation is 401% above industry average
• CAB Cakaran Corporation Berhad's total shareholder return over the past three years was 66% while its EPS grew by 144% over the past three years

Performance at CAB Cakaran Corporation Berhad (KLSE:CAB) has been reasonably good and CEO Hoon Chuah has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 25th of March, 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.

View our latest analysis for CAB Cakaran Corporation Berhad

Comparing CAB Cakaran Corporation Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that CAB Cakaran Corporation Berhad has a market capitalization of RM505m, and reported total annual CEO compensation of RM1.4m for the year to September 2023. Notably, that's an increase of 16% over the year before. Notably, the salary which is RM963.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysian Food industry with market capitalizations below RM944m, we found that the median total CEO compensation was RM278k. Accordingly, our analysis reveals that CAB Cakaran Corporation Berhad pays Hoon Chuah north of the industry median. Furthermore, Hoon Chuah directly owns RM10m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2021	Proportion (2023)
Salary	RM963k	RM894k	69%
Other	RM428k	RM303k	31%
Total Compensation	RM1.4m	RM1.2m	100%

On an industry level, roughly 68% of total compensation represents salary and 32% 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 salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

CAB Cakaran Corporation Berhad's Growth

CAB Cakaran Corporation Berhad has seen its earnings per share (EPS) increase by 144% a year over the past three years. It achieved revenue growth of 11% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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?

Most shareholders would probably be pleased with CAB Cakaran Corporation Berhad for providing a total return of 66% 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CAB Cakaran Corporation Berhad.

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.