Here's Why Shareholders May Want To Be Cautious With Increasing Teck Guan Perdana Berhad's (KLSE:TECGUAN) CEO Pay Packet

Key Insights

• Teck Guan Perdana Berhad will host its Annual General Meeting on 26th of June
• CEO Ngit Ming Hong's total compensation includes salary of RM315.0k
• The total compensation is 31% higher than the average for the industry
• Teck Guan Perdana Berhad's total shareholder return over the past three years was 53% while its EPS grew by 2.4% over the past three years

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Performance at Teck Guan Perdana Berhad (KLSE:TECGUAN) has been reasonably good and CEO Ngit Ming Hong has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 26th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for Teck Guan Perdana Berhad

Comparing Teck Guan Perdana Berhad's CEO Compensation With The Industry

Our data indicates that Teck Guan Perdana Berhad has a market capitalization of RM69m, and total annual CEO compensation was reported as RM410k for the year to January 2025. That's a fairly small increase of 6.9% over the previous year. We note that the salary portion, which stands at RM315.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Malaysian Food industry with market capitalizations below RM852m, we found that the median total CEO compensation was RM314k. This suggests that Ngit Ming Hong is paid more than the median for the industry.

On an industry level, around 64% of total compensation represents salary and 36% is other remuneration. Teck Guan Perdana Berhad is paying a higher share of its remuneration through a 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 Teck Guan Perdana Berhad's Growth Numbers

Teck Guan Perdana Berhad's earnings per share (EPS) grew 2.4% per year over the last three years. Its revenue is up 23% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Teck Guan Perdana Berhad Been A Good Investment?

Boasting a total shareholder return of 53% over three years, Teck Guan Perdana Berhad has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 1 which is concerning) in Teck Guan Perdana 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.