How Much Does Careplus Group Berhad's (KLSE:CAREPLS) CEO Make?

Kwee Lim is the CEO of Careplus Group Berhad (KLSE:CAREPLS), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Careplus Group Berhad

Comparing Careplus Group Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Careplus Group Berhad has a market capitalization of RM1.9b, and reported total annual CEO compensation of RM840k for the year to December 2019. We note that's an increase of 22% above last year. In particular, the salary of RM559.2k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations ranging from RM832m to RM3.3b, the reported median CEO total compensation was RM2.2m. This suggests that Kwee Lim is paid below the industry median. What's more, Kwee Lim holds RM468m 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, around 70% of total compensation represents salary and 30% is other remuneration. Our data reveals that Careplus Group Berhad allocates salary more or less in line with the wider market. 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.

Careplus Group Berhad's Growth

Over the past three years, Careplus Group Berhad has seen its earnings per share (EPS) grow by 62% per year. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Careplus Group Berhad Been A Good Investment?

Most shareholders would probably be pleased with Careplus Group Berhad for providing a total return of 955% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As previously discussed, Kwee is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Since EPS growth is heading in a positive direction; many would agree with our assessment that the pay is modest. And given most shareholders are probably very happy with recent shareholder returns, they might even think Kwee deserves a raise!

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is significant) in Careplus Group 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. 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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