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
Our data indicates that Careplus Group Berhad has a market capitalization of RM1.4b, and total annual CEO compensation was reported as RM840k for the year to December 2019. Notably, that's an increase of 22% over the year before. Notably, the salary which is RM559.2k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations ranging from RM811m to RM3.2b, the reported median CEO total compensation was RM2.3m. In other words, Careplus Group Berhad pays its CEO lower than the industry median. Furthermore, Kwee Lim directly owns RM343m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2019 | 2017 | Proportion (2019) |
| Salary | RM559k | RM534k | 67% |
| Other | RM281k | RM156k | 33% |
| Total Compensation | RM840k | RM690k | 100% |
On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Careplus Group Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at Careplus Group Berhad's Growth Numbers
Over the past three years, Careplus Group Berhad has seen its earnings per share (EPS) grow by 380% per year. It achieved revenue growth of 31% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast 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 732% over three years. 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.
In Summary...
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. Considering robust EPS growth, we believe Kwee to be modestly paid. Given the strong history of shareholder returns, the shareholders are probably very happy with Kwee's performance.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Careplus Group Berhad that investors should be aware of in a dynamic business environment.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.
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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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About KLSE:CAREPLS
Careplus Group Berhad
An investment holding company, engages in the manufacture and processing of gloves in South America, North America, Malaysia, rest of Asia Pacific, and internationally.
Adequate balance sheet low.
