Increases to Kim Loong Resources Berhad's (KLSE:KMLOONG) CEO Compensation Might Cool off for now

Key Insights

• Kim Loong Resources Berhad will host its Annual General Meeting on 17th of July
• CEO Seong Gooi's total compensation includes salary of RM588.0k
• Total compensation is 121% above industry average
• Kim Loong Resources Berhad's EPS grew by 0.5% over the past three years while total shareholder return over the past three years was 76%

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CEO Seong Gooi has done a decent job of delivering relatively good performance at Kim Loong Resources Berhad (KLSE:KMLOONG) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Kim Loong Resources Berhad

How Does Total Compensation For Seong Gooi Compare With Other Companies In The Industry?

Our data indicates that Kim Loong Resources Berhad has a market capitalization of RM2.2b, and total annual CEO compensation was reported as RM2.1m for the year to January 2025. There was no change in the compensation compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM588k.

In comparison with other companies in the Malaysian Food industry with market capitalizations ranging from RM849m to RM3.4b, the reported median CEO total compensation was RM945k. Accordingly, our analysis reveals that Kim Loong Resources Berhad pays Seong Gooi north of the industry median. What's more, Seong Gooi holds RM22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. In Kim Loong Resources Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Kim Loong Resources Berhad's Growth Numbers

Earnings per share at Kim Loong Resources Berhad are much the same as they were three years ago, albeit with slightly higher. Its revenue is up 7.5% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Kim Loong Resources Berhad Been A Good Investment?

Boasting a total shareholder return of 76% over three years, Kim Loong Resources 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...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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 is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Kim Loong Resources 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.