The CEO Of Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) Might See A Pay Rise On The Horizon

Key Insights

• Hap Seng Plantations Holdings Berhad will host its Annual General Meeting on 28th of May
• Total pay for CEO Edward Lee includes RM538.0k salary
• The overall pay is 51% below the industry average
• Hap Seng Plantations Holdings Berhad's EPS grew by 0.4% over the past three years while total shareholder return over the past three years was 5.3%

The decent performance at Hap Seng Plantations Holdings Berhad (KLSE:HSPLANT) recently will please most shareholders as they go into the AGM coming up on 28th of May. The focus will probably be on the future strategic initiatives that the board and management will put in place to improve the business rather than executive remuneration when they cast their votes on company resolutions. We have prepared some analysis below and we show why we think CEO compensation looks decent with even the possibility for a raise.

See our latest analysis for Hap Seng Plantations Holdings Berhad

How Does Total Compensation For Edward Lee Compare With Other Companies In The Industry?

Our data indicates that Hap Seng Plantations Holdings Berhad has a market capitalization of RM1.4b, and total annual CEO compensation was reported as RM855k for the year to December 2023. That's slightly lower by 6.6% over the previous year. We note that the salary portion, which stands at RM538.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Malaysian Food industry with market caps ranging from RM939m to RM3.8b, we found that the median CEO total compensation was RM1.7m. This suggests that Edward Lee is paid below the industry median.

Component	2023	2022	Proportion (2023)
Salary	RM538k	RM513k	63%
Other	RM317k	RM402k	37%
Total Compensation	RM855k	RM915k	100%

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Our data reveals that Hap Seng Plantations Holdings Berhad allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Hap Seng Plantations Holdings Berhad's Growth Numbers

Earnings per share at Hap Seng Plantations Holdings Berhad are much the same as they were three years ago, albeit with slightly higher. In the last year, its revenue is down 18%.

We generally like to see a little revenue growth, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Hap Seng Plantations Holdings Berhad Been A Good Investment?

With a total shareholder return of 5.3% over three years, Hap Seng Plantations Holdings Berhad has done okay by shareholders, but there's always room for improvement. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Overall, the company hasn't done too poorly performance-wise, but we would like to see some improvement. Assuming the business continues to grow at a good clip, few shareholders would raise any objections to the CEO's remuneration. Rather, investors would more likely want to engage on discussions related to key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for Hap Seng Plantations Holdings Berhad that investors should look into moving forward.

Switching gears from Hap Seng Plantations Holdings Berhad, 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.