Ta Ann Holdings Berhad's (KLSE:TAANN) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Ta Ann Holdings Berhad will host its Annual General Meeting on 23rd of May
• Total pay for CEO Kuo Wong includes RM1.54m salary
• The overall pay is 211% above the industry average
• Ta Ann Holdings Berhad's three-year loss to shareholders was 8.2% while its EPS was down 17% over the past three years

Our free stock report includes 1 warning sign investors should be aware of before investing in Ta Ann Holdings Berhad. Read for free now.

Ta Ann Holdings Berhad (KLSE:TAANN) has not performed well recently and CEO Kuo Wong will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 23rd of May. 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 Ta Ann Holdings Berhad

Comparing Ta Ann Holdings Berhad's CEO Compensation With The Industry

According to our data, Ta Ann Holdings Berhad has a market capitalization of RM1.7b, and paid its CEO total annual compensation worth RM2.9m over the year to December 2024. We note that's an increase of 19% above last year. In particular, the salary of RM1.54m, makes up a fairly large portion of the total compensation being paid to the CEO.

On comparing similar companies from the Malaysian Food industry with market caps ranging from RM859m to RM3.4b, we found that the median CEO total compensation was RM944k. Accordingly, our analysis reveals that Ta Ann Holdings Berhad pays Kuo Wong north of the industry median. Furthermore, Kuo Wong directly owns RM64m 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. Ta Ann Holdings Berhad sets aside a smaller share of compensation for salary, in comparison to the overall 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.

A Look at Ta Ann Holdings Berhad's Growth Numbers

Ta Ann Holdings Berhad has reduced its earnings per share by 17% a year over the last three years. Its revenue is down 1.8% over the previous 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Ta Ann Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 8.2% over three years, many shareholders in Ta Ann Holdings Berhad are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 1 warning sign for Ta Ann Holdings Berhad that investors should look into moving forward.

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.