We Discuss Why The CEO Of United Plantations Berhad (KLSE:UTDPLT) Is Due For A Pay Rise

Key Insights

• United Plantations Berhad's Annual General Meeting to take place on 23rd of April
• Total pay for CEO Carl Bek-Nielsen includes RM2.04m salary
• The overall pay is 34% below the industry average
• United Plantations Berhad's EPS grew by 11% over the past three years while total shareholder return over the past three years was 164%

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The solid performance at United Plantations Berhad (KLSE:UTDPLT) has been impressive and shareholders will probably be pleased to know that CEO Carl Bek-Nielsen has delivered. At the upcoming AGM on 23rd of April, they would be interested to hear about the company strategy going forward and get a chance to cast their votes on resolutions such as executive remuneration and other company matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

Check out our latest analysis for United Plantations Berhad

Comparing United Plantations Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that United Plantations Berhad has a market capitalization of RM14b, and reported total annual CEO compensation of RM2.8m for the year to December 2024. That's a fairly small increase of 5.7% over the previous year. In particular, the salary of RM2.04m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar companies from the Malaysian Food industry with market caps ranging from RM8.8b to RM28b, we found that the median CEO total compensation was RM4.2m. That is to say, Carl Bek-Nielsen is paid under the industry median. What's more, Carl Bek-Nielsen holds RM177m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. United Plantations Berhad pays out 73% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

United Plantations Berhad's Growth

United Plantations Berhad has seen its earnings per share (EPS) increase by 11% a year over the past three years. It achieved revenue growth of 6.8% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has United Plantations Berhad Been A Good Investment?

Boasting a total shareholder return of 164% over three years, United Plantations Berhad has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for United Plantations Berhad that investors should think about before committing capital to this stock.

Switching gears from United Plantations 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. 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.