How Much is Guan Chong Berhad's (KLSE:GCB) CEO Getting Paid?

This article will reflect on the compensation paid to Brandon Tay who has served as CEO of Guan Chong Berhad (KLSE:GCB) since 2005. This analysis will also assess whether Guan Chong Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Guan Chong Berhad

Comparing Guan Chong Berhad's CEO Compensation With the industry

According to our data, Guan Chong Berhad has a market capitalization of RM2.8b, and paid its CEO total annual compensation worth RM9.2m over the year to December 2019. That's a notable increase of 52% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM1.8m.

On comparing similar companies from the same industry with market caps ranging from RM1.6b to RM6.5b, we found that the median CEO total compensation was RM1.5m. This suggests that Brandon Tay is paid more than the median for the industry. Furthermore, Brandon Tay directly owns RM81m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. Guan Chong Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Guan Chong Berhad's Growth

Guan Chong Berhad has seen its earnings per share (EPS) increase by 50% a year over the past three years. In the last year, its revenue is up 23%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Guan Chong Berhad Been A Good Investment?

Most shareholders would probably be pleased with Guan Chong Berhad for providing a total return of 167% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

As previously discussed, Brandon is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. Considering such exceptional results for the company, we'd venture to say CEO compensation is fair. The pleasing shareholder returns are the cherry on top. We wouldn't be wrong in saying that shareholders feel that Brandon's performance creates value for the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Guan Chong Berhad (1 is a bit unpleasant!) that you should be aware of before investing here.

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. 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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