NTPM Holdings Berhad's (KLSE:NTPM) CEO Compensation Is Looking A Bit Stretched At The Moment

Performance at NTPM Holdings Berhad (KLSE:NTPM) has been reasonably good and CEO Chong Lee has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 23 September 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for NTPM Holdings Berhad

How Does Total Compensation For Chong Lee Compare With Other Companies In The Industry?

According to our data, NTPM Holdings Berhad has a market capitalization of RM483m, and paid its CEO total annual compensation worth RM1.9m over the year to April 2022. That's a notable decrease of 32% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM840k.

On comparing similar-sized companies in the industry with market capitalizations below RM907m, we found that the median total CEO compensation was RM579k. This suggests that Chong Lee is paid more than the median for the industry. Furthermore, Chong Lee directly owns RM57m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2022	2021	Proportion (2022)
Salary	RM840k	RM974k	45%
Other	RM1.0m	RM1.8m	55%
Total Compensation	RM1.9m	RM2.7m	100%

Talking in terms of the industry, salary represented approximately 99% of total compensation out of all the companies we analyzed, while other remuneration made up 0.54785% of the pie. NTPM Holdings Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at NTPM Holdings Berhad's Growth Numbers

Over the past three years, NTPM Holdings Berhad has seen its earnings per share (EPS) grow by 47% per year. It achieved revenue growth of 2.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has NTPM Holdings Berhad Been A Good Investment?

NTPM Holdings Berhad has served shareholders reasonably well, with a total return of 11% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for NTPM Holdings Berhad (1 is concerning!) that you should be aware of before investing here.

Important note: NTPM Holdings 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.