MNRB Holdings Berhad's (KLSE:MNRB) CEO Will Probably Have Their Compensation Approved By Shareholders

Key Insights

• MNRB Holdings Berhad's Annual General Meeting to take place on 27th of September
• Salary of RM1.87m is part of CEO Zaharudin Daud's total remuneration
• Total compensation is similar to the industry average
• MNRB Holdings Berhad's total shareholder return over the past three years was 111% while its EPS grew by 35% over the past three years

The performance at MNRB Holdings Berhad (KLSE:MNRB) has been quite strong recently and CEO Zaharudin Daud has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 27th of September. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

See our latest analysis for MNRB Holdings Berhad

How Does Total Compensation For Zaharudin Daud Compare With Other Companies In The Industry?

According to our data, MNRB Holdings Berhad has a market capitalization of RM1.9b, and paid its CEO total annual compensation worth RM2.3m over the year to March 2024. Notably, that's an increase of 30% over the year before. We note that the salary portion, which stands at RM1.87m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Malaysia Insurance industry with market caps ranging from RM841m to RM3.4b, we found that the median CEO total compensation was RM1.8m. This suggests that MNRB Holdings Berhad remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	RM1.9m	RM1.4m	83%
Other	RM388k	RM301k	17%
Total Compensation	RM2.3m	RM1.7m	100%

Talking in terms of the industry, salary represented approximately 46% of total compensation out of all the companies we analyzed, while other remuneration made up 54% of the pie. MNRB Holdings Berhad pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

MNRB Holdings Berhad's Growth

MNRB Holdings Berhad has seen its earnings per share (EPS) increase by 35% a year over the past three years. Its revenue is down 2.0% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has MNRB Holdings Berhad Been A Good Investment?

Most shareholders would probably be pleased with MNRB Holdings Berhad for providing a total return of 111% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for MNRB Holdings Berhad that you should be aware of before investing.

Switching gears from MNRB Holdings 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.