The CEO of NTPM Holdings Berhad (KLSE:NTPM) is See Lee, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for NTPM Holdings Berhad
How Does Total Compensation For See Lee Compare With Other Companies In The Industry?
According to our data, NTPM Holdings Berhad has a market capitalization of RM887m, and paid its CEO total annual compensation worth RM1.0m over the year to April 2020. That is, the compensation was roughly the same as last year. In particular, the salary of RM936.0k, 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 RM406m to RM1.6b, the reported median CEO total compensation was RM1.0m. So it looks like NTPM Holdings Berhad compensates See Lee in line with the median for the industry. Moreover, See Lee also holds RM262m worth of NTPM Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | RM936k | RM948k | 92% |
| Other | RM76k | RM76k | 8% |
| Total Compensation | RM1.0m | RM1.0m | 100% |
Talking in terms of the industry, salary represented approximately 71% of total compensation out of all the companies we analyzed, while other remuneration made up 29% of the pie. NTPM Holdings Berhad pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at NTPM Holdings Berhad's Growth Numbers
Over the last three years, NTPM Holdings Berhad has shrunk its earnings per share by 6.1% per year. Its revenue is up 1.4% over the last year.
The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has NTPM Holdings Berhad Been A Good Investment?
Most shareholders would probably be pleased with NTPM Holdings Berhad for providing a total return of 38% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
As we noted earlier, NTPM Holdings Berhad pays its CEO in line with similar-sized companies belonging to the same industry. Some investors may take issue with this, especially considering shrinking EPS for the past three years. But on the bright side, shareholder returns have moved northward during the same period. We wouldn't say CEO compensation is too high, but shareholders might think performance needs to be improved before paying any more.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for NTPM Holdings Berhad that you should be aware of before investing.
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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About KLSE:NTPM
NTPM Holdings Berhad
An investment holding company, manufactures and distributes tissue paper and personal care products in Malaysia, Singapore, Thailand, Vietnam, and internationally.
Good value with adequate balance sheet.
