Shareholders Will Probably Not Have Any Issues With One Glove Group Berhad's (KLSE:ONEGLOVE) CEO Compensation

Key Insights

• One Glove Group Berhad's Annual General Meeting to take place on 2nd of September
• Total pay for CEO BT Low includes RM540.0k salary
• The total compensation is 31% less than the average for the industry
• One Glove Group Berhad's EPS declined by 51% over the past three years while total shareholder loss over the past three years was 90%

The performance at One Glove Group Berhad (KLSE:ONEGLOVE) has been rather lacklustre of late and shareholders may be wondering what CEO BT Low is planning to do about this. At the next AGM coming up on 2nd of September, they can influence managerial decision making through voting on resolutions, including executive remuneration. It has been shown that setting appropriate executive remuneration incentivises the management to act in the interests of shareholders. We have prepared some analysis below to show that CEO compensation looks to be reasonable.

View our latest analysis for One Glove Group Berhad

Comparing One Glove Group Berhad's CEO Compensation With The Industry

Our data indicates that One Glove Group Berhad has a market capitalization of RM111m, and total annual CEO compensation was reported as RM635k for the year to March 2024. That's a notable decrease of 19% on last year. In particular, the salary of RM540.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Malaysia Medical Equipment industry with market capitalizations below RM875m, reported a median total CEO compensation of RM916k. Accordingly, One Glove Group Berhad pays its CEO under the industry median. Moreover, BT Low also holds RM40m worth of One Glove Group Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	RM540k	RM810k	85%
Other	RM95k		15%
Total Compensation	RM635k	RM785k	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. It's interesting to note that One Glove Group Berhad pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

One Glove Group Berhad's Growth

Over the last three years, One Glove Group Berhad has shrunk its earnings per share by 51% per year. In the last year, its revenue is up 566%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has One Glove Group Berhad Been A Good Investment?

Few One Glove Group Berhad shareholders would feel satisfied with the return of -90% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss is certainly disheartening. The downward trend in share price performance may be attributable to the the fact that earnings growth has gone backwards. In the upcoming AGM, shareholders will get the opportunity to discuss these concerns with the board and assess if the board's plan is likely to improve company performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 4 warning signs for One Glove Group Berhad (2 can't be ignored!) that you should be aware of before investing here.

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.