Increases to CEO Compensation Might Be Put On Hold For Now at Sin Heng Chan (Malaya) Berhad (KLSE:SHCHAN)

Key Insights

• Sin Heng Chan (Malaya) Berhad to hold its Annual General Meeting on 28th of May
• Salary of RM1.09m is part of CEO Keng Choo's total remuneration
• The total compensation is 364% higher than the average for the industry
• Sin Heng Chan (Malaya) Berhad's three-year loss to shareholders was 36% while its EPS was down 54% over the past three years

We've discovered 4 warning signs about Sin Heng Chan (Malaya) Berhad. View them for free.

The underwhelming share price performance of Sin Heng Chan (Malaya) Berhad (KLSE:SHCHAN) in the past three years would have disappointed many shareholders. Per share earnings growth is also lacking, despite revenue growth. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 28th of May, where they can impact on future company performance by voting on resolutions, including executive compensation. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Sin Heng Chan (Malaya) Berhad

How Does Total Compensation For Keng Choo Compare With Other Companies In The Industry?

At the time of writing, our data shows that Sin Heng Chan (Malaya) Berhad has a market capitalization of RM81m, and reported total annual CEO compensation of RM1.6m for the year to December 2024. We note that's an increase of 28% above last year. We note that the salary portion, which stands at RM1.09m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Malaysian Food industry with market capitalizations under RM854m, the reported median total CEO compensation was RM336k. Accordingly, our analysis reveals that Sin Heng Chan (Malaya) Berhad pays Keng Choo north of the industry median. Furthermore, Keng Choo directly owns RM13m 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	RM988k	70%
Other	RM469k	RM234k	30%
Total Compensation	RM1.6m	RM1.2m	100%

Speaking on an industry level, nearly 64% of total compensation represents salary, while the remainder of 36% is other remuneration. There isn't a significant difference between Sin Heng Chan (Malaya) Berhad and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Sin Heng Chan (Malaya) Berhad's Growth

Over the last three years, Sin Heng Chan (Malaya) Berhad has shrunk its earnings per share by 54% per year. Its revenue is up 22% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Sin Heng Chan (Malaya) Berhad Been A Good Investment?

The return of -36% over three years would not have pleased Sin Heng Chan (Malaya) Berhad shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 4 warning signs (and 2 which shouldn't be ignored) in Sin Heng Chan (Malaya) Berhad we think you should know about.

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.