We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Gopeng Berhad's (KLSE:GOPENG) CEO For Now

Key Insights

• Gopeng Berhad's Annual General Meeting to take place on 18th of June
• Salary of RM1.12m is part of CEO Mohd bin Hashim's total remuneration
• Total compensation is 433% above industry average
• Gopeng Berhad's total shareholder return over the past three years was 96% while its EPS grew by 125% over the past three years

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Under the guidance of CEO Mohd bin Hashim, Gopeng Berhad (KLSE:GOPENG) 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 18th of June. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Gopeng Berhad

Comparing Gopeng Berhad's CEO Compensation With The Industry

Our data indicates that Gopeng Berhad has a market capitalization of RM305m, and total annual CEO compensation was reported as RM1.8m for the year to December 2024. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at RM1.12m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Food industry with market capitalizations below RM847m, reported a median total CEO compensation of RM338k. Hence, we can conclude that Mohd bin Hashim is remunerated higher than the industry median. Furthermore, Mohd bin Hashim directly owns RM63m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	RM1.1m	RM1.0m	62%
Other	RM683k	RM783k	38%
Total Compensation	RM1.8m	RM1.8m	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. Gopeng Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Gopeng Berhad's Growth Numbers

Over the past three years, Gopeng Berhad has seen its earnings per share (EPS) grow by 125% per year. In the last year, its revenue is up 2,826%.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. 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?

Boasting a total shareholder return of 96% over three years, Gopeng Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar 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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Gopeng Berhad that investors should think about before committing capital to this 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.

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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.