Here's Why Shareholders May Want To Be Cautious With Increasing Harn Len Corporation Bhd's (KLSE:HARNLEN) CEO Pay Packet

Key Insights

• Harn Len Corporation Bhd to hold its Annual General Meeting on 25th of November
• Salary of RM720.0k is part of CEO Quek Low's total remuneration
• The overall pay is 112% above the industry average
• Harn Len Corporation Bhd's three-year loss to shareholders was 11% while its EPS grew by 282% over the past three years

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

In the past three years, the share price of Harn Len Corporation Bhd (KLSE:HARNLEN) has struggled to generate growth for its shareholders. 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 25th of November. 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.

See our latest analysis for Harn Len Corporation Bhd

Comparing Harn Len Corporation Bhd's CEO Compensation With The Industry

According to our data, Harn Len Corporation Bhd has a market capitalization of RM365m, and paid its CEO total annual compensation worth RM773k over the year to May 2025. That's slightly lower by 6.8% over the previous year. We note that the salary portion, which stands at RM720.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Food industry with market capitalizations below RM835m, reported a median total CEO compensation of RM364k. This suggests that Quek Low is paid more than the median for the industry. Furthermore, Quek Low directly owns RM20m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. According to our research, Harn Len Corporation Bhd has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Harn Len Corporation Bhd's Growth Numbers

Harn Len Corporation Bhd has seen its earnings per share (EPS) increase by 282% a year over the past three years. In the last year, its revenue is up 29%.

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. 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 Harn Len Corporation Bhd Been A Good Investment?

Since shareholders would have lost about 11% over three years, some Harn Len Corporation Bhd investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for Harn Len Corporation Bhd you should be aware of, and 1 of them shouldn't be ignored.

Switching gears from Harn Len Corporation Bhd, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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.