Here's Why Shareholders May Want To Be Cautious With Increasing C.I. Holdings Berhad's (KLSE:CIHLDG) CEO Pay Packet

Under the guidance of CEO Joha Bin Megat Abdul Rahman, C.I. Holdings Berhad (KLSE:CIHLDG) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26 October 2022. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for C.I. Holdings Berhad

How Does Total Compensation For Joha Bin Megat Abdul Rahman Compare With Other Companies In The Industry?

Our data indicates that C.I. Holdings Berhad has a market capitalization of RM457m, and total annual CEO compensation was reported as RM1.3m for the year to June 2022. We note that's a decrease of 16% compared to last year. We note that the salary portion, which stands at RM876.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM945m, we found that the median total CEO compensation was RM524k. Accordingly, our analysis reveals that C.I. Holdings Berhad pays Joha Bin Megat Abdul Rahman north of the industry median. Furthermore, Joha Bin Megat Abdul Rahman directly owns RM2.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	RM876k	RM896k	68%
Other	RM408k	RM636k	32%
Total Compensation	RM1.3m	RM1.5m	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. There isn't a significant difference between C.I. Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at C.I. Holdings Berhad's Growth Numbers

Over the past three years, C.I. Holdings Berhad has seen its earnings per share (EPS) grow by 52% per year. Its revenue is up 29% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has C.I. Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 132% over three years, C.I. Holdings Berhad has done well by shareholders. 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.

To Conclude...

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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for C.I. Holdings Berhad that you should be aware of before investing.

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.

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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.