We Think PT Resources Holdings Berhad's (KLSE:PTRB) CEO Compensation Package Needs To Be Put Under A Microscope

Key Insights

• Resources Holdings Berhad to hold its Annual General Meeting on 17th of October
• Salary of RM630.0k is part of CEO Chang Heng's total remuneration
• The total compensation is 122% higher than the average for the industry
• Resources Holdings Berhad's three-year loss to shareholders was 37% while its EPS was down 31% over the past three years

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Shareholders will probably not be too impressed with the underwhelming results at PT Resources Holdings Berhad (KLSE:PTRB) recently. At the upcoming AGM on 17th of October, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Resources Holdings Berhad

How Does Total Compensation For Chang Heng Compare With Other Companies In The Industry?

At the time of writing, our data shows that PT Resources Holdings Berhad has a market capitalization of RM120m, and reported total annual CEO compensation of RM703k for the year to April 2025. Notably, that's an increase of 27% over the year before. Notably, the salary which is RM630.0k, represents most of the total compensation being paid.

In comparison with other companies in the Malaysian Food industry with market capitalizations under RM845m, the reported median total CEO compensation was RM317k. Accordingly, our analysis reveals that PT Resources Holdings Berhad pays Chang Heng north of the industry median. Furthermore, Chang Heng directly owns RM83m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2025	2024	Proportion (2025)
Salary	RM630k	RM468k	90%
Other	RM73k	RM87k	10%
Total Compensation	RM703k	RM555k	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. According to our research, Resources Holdings Berhad has allocated a higher percentage of pay to salary in comparison to the wider industry. 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.

PT Resources Holdings Berhad's Growth

Over the last three years, PT Resources Holdings Berhad has shrunk its earnings per share by 31% per year. It saw its revenue drop 13% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 PT Resources Holdings Berhad Been A Good Investment?

The return of -37% over three years would not have pleased PT Resources Holdings Berhad shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 3 warning signs for Resources Holdings Berhad (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the 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.