How Is Gopeng Berhad's (KLSE:GOPENG) CEO Paid Relative To Peers?

Mohd bin Hashim has been the CEO of Gopeng Berhad (KLSE:GOPENG) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Gopeng Berhad.

See our latest analysis for Gopeng Berhad

How Does Total Compensation For Mohd bin Hashim Compare With Other Companies In The Industry?

At the time of writing, our data shows that Gopeng Berhad has a market capitalization of RM179m, and reported total annual CEO compensation of RM1.9m for the year to December 2019. That's just a smallish increase of 3.6% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM960k.

On comparing similar-sized companies in the industry with market capitalizations below RM810m, we found that the median total CEO compensation was RM659k. Hence, we can conclude that Mohd bin Hashim is remunerated higher than the industry median. Furthermore, Mohd bin Hashim directly owns RM37m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Gopeng 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.

Gopeng Berhad's Growth

Gopeng Berhad has reduced its earnings per share by 76% a year over the last three years. It achieved revenue growth of 2.7% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Gopeng Berhad Been A Good Investment?

Since shareholders would have lost about 19% over three years, some Gopeng Berhad investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Gopeng 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. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Gopeng Berhad you should be aware of, and 1 of them is a bit unpleasant.

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.

If you decide to trade Gopeng Berhad, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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