Why We Think Sunzen Group Berhad's (KLSE:SUNZEN) CEO Compensation Is Not Excessive At All

Key Insights

• Sunzen Group Berhad to hold its Annual General Meeting on 2nd of December
• CEO Yek Teo's total compensation includes salary of RM300.0k
• The overall pay is comparable to the industry average
• Over the past three years, Sunzen Group Berhad's EPS fell by 2.5% and over the past three years, the total shareholder return was 32%

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The share price of Sunzen Group Berhad (KLSE:SUNZEN) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. The upcoming AGM on 2nd of December may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

View our latest analysis for Sunzen Group Berhad

Comparing Sunzen Group Berhad's CEO Compensation With The Industry

Our data indicates that Sunzen Group Berhad has a market capitalization of RM207m, and total annual CEO compensation was reported as RM365k for the year to June 2025. Notably, that's an increase of 14% over the year before. In particular, the salary of RM300.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Malaysia Personal Products industry with market capitalizations under RM827m, the reported median total CEO compensation was RM471k. So it looks like Sunzen Group Berhad compensates Yek Teo in line with the median for the industry. What's more, Yek Teo holds RM31m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. Although there is a difference in how total compensation is set, Sunzen Group Berhad more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Sunzen Group Berhad's Growth

Over the last three years, Sunzen Group Berhad has shrunk its earnings per share by 2.5% per year. In the last year, its revenue is down 15%.

Its a bit disappointing to see that the company has failed to grow its EPS. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sunzen Group Berhad Been A Good Investment?

Sunzen Group Berhad has generated a total shareholder return of 32% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 2 warning signs for Sunzen Group Berhad that investors should look into moving forward.

Switching gears from Sunzen Group Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.