Carlsberg Brewery Malaysia Berhad's (KLSE:CARLSBG) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Carlsberg Brewery Malaysia Berhad's Annual General Meeting to take place on 24th of April
• Salary of RM2.32m is part of CEO Stefano Clini's total remuneration
• The overall pay is 276% above the industry average
• Carlsberg Brewery Malaysia Berhad's EPS grew by 26% over the past three years while total shareholder loss over the past three years was 11%

As many shareholders of Carlsberg Brewery Malaysia Berhad (KLSE:CARLSBG) will be aware, they have not made a gain on their investment in the past three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 24th of April. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Carlsberg Brewery Malaysia Berhad

How Does Total Compensation For Stefano Clini Compare With Other Companies In The Industry?

Our data indicates that Carlsberg Brewery Malaysia Berhad has a market capitalization of RM5.7b, and total annual CEO compensation was reported as RM5.0m for the year to December 2023. That's a notable increase of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM2.3m.

In comparison with other companies in the Malaysian Beverage industry with market capitalizations ranging from RM1.9b to RM7.7b, the reported median CEO total compensation was RM1.3m. This suggests that Stefano Clini is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	RM2.3m	RM2.5m	47%
Other	RM2.7m	RM1.6m	53%
Total Compensation	RM5.0m	RM4.0m	100%

On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. Carlsberg Brewery Malaysia Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Carlsberg Brewery Malaysia Berhad's Growth Numbers

Over the past three years, Carlsberg Brewery Malaysia Berhad has seen its earnings per share (EPS) grow by 26% per year. Its revenue is down 6.3% 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. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Carlsberg Brewery Malaysia Berhad Been A Good Investment?

With a three year total loss of 11% for the shareholders, Carlsberg Brewery Malaysia Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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. That's why we did our research, and identified 2 warning signs for Carlsberg Brewery Malaysia Berhad (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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

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.