How Does Teck Guan Perdana Berhad's (KLSE:TECGUAN) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Ngit Ming Hong who has served as CEO of Teck Guan Perdana Berhad (KLSE:TECGUAN) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Teck Guan Perdana Berhad.

Check out our latest analysis for Teck Guan Perdana Berhad

How Does Total Compensation For Ngit Ming Hong Compare With Other Companies In The Industry?

At the time of writing, our data shows that Teck Guan Perdana Berhad has a market capitalization of RM54m, and reported total annual CEO compensation of RM207k for the year to January 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is RM183.9k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM815m, the reported median total CEO compensation was RM661k. Accordingly, Teck Guan Perdana Berhad pays its CEO under the industry median.

On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. It's interesting to note that Teck Guan Perdana Berhad pays out a greater portion of remuneration through salary, compared to the 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 191% per year over the last three years. It achieved revenue growth of 32% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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?

With a total shareholder return of 1.5% over three years, Teck Guan Perdana Berhad has done okay by shareholders. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

To Conclude...

As previously discussed, Ngit Ming is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But over the last three years, EPS growth has been growing rapidly, which is a great sign for the company. Unfortunately, although shareholder returns are growing, they haven't impressed us as much in comparison, over the same period. Shareholder returns could be better but we're pleased with the positive EPS growth. So it's fair to say Ngit Ming has done quite well despite modest compensation and shareholders might not be averse to a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 5 warning signs (and 3 which don't sit too well with us) in Teck Guan Perdana Berhad we think you should know about.

Switching gears from Teck Guan Perdana Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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This article by Simply Wall St is general in nature. 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.
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