We Think Shareholders May Want To Consider A Review Of Hextar Healthcare Berhad's (KLSE:HEXCARE) CEO Compensation Package

Key Insights

• Hextar Healthcare Berhad's Annual General Meeting to take place on 29th of May
• CEO Chin Khoo's total compensation includes salary of RM787.0k
• The total compensation is similar to the average for the industry
• Over the past three years, Hextar Healthcare Berhad's EPS fell by 90% and over the past three years, the total loss to shareholders 81%

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Hextar Healthcare Berhad (KLSE:HEXCARE) has not performed well recently and CEO Chin Khoo will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of May. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for Hextar Healthcare Berhad

Comparing Hextar Healthcare Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that Hextar Healthcare Berhad has a market capitalization of RM132m, and reported total annual CEO compensation of RM787k for the year to December 2024. There was no change in the compensation compared to last year. It is worth noting that the CEO compensation consists entirely of the salary, worth RM787k.

In comparison with other companies in the Malaysia Household Products industry with market capitalizations under RM855m, the reported median total CEO compensation was RM723k. This suggests that Hextar Healthcare Berhad remunerates its CEO largely in line with the industry average.

Component	2024	2024	Proportion (2024)
Salary	RM787k	RM787k	100%
Other	-	-	-
Total Compensation	RM787k	RM787k	100%

On an industry level, around 84% of total compensation represents salary and 16% is other remuneration. At the company level, Hextar Healthcare Berhad pays Chin Khoo solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Hextar Healthcare Berhad's Growth

Over the last three years, Hextar Healthcare Berhad has shrunk its earnings per share by 90% per year. Its revenue is down 4.6% over the previous year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Hextar Healthcare Berhad Been A Good Investment?

Few Hextar Healthcare Berhad shareholders would feel satisfied with the return of -81% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Hextar Healthcare Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is a bit unpleasant) in Hextar Healthcare Berhad we think you should know about.

Important note: Hextar Healthcare Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.