It's Unlikely That Can-One Berhad's (KLSE:CANONE) CEO Will See A Huge Pay Rise This Year

Key Insights

• Can-One Berhad to hold its Annual General Meeting on 25th of June
• Salary of RM546.8k is part of CEO Marc Francis Yeoh's total remuneration
• The total compensation is 272% higher than the average for the industry
• Over the past three years, Can-One Berhad's EPS grew by 5.8% and over the past three years, the total loss to shareholders 35%

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Shareholders of Can-One Berhad (KLSE:CANONE) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 25th of June. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Can-One Berhad

Comparing Can-One Berhad's CEO Compensation With The Industry

Our data indicates that Can-One Berhad has a market capitalization of RM405m, and total annual CEO compensation was reported as RM789k for the year to December 2024. Notably, that's an increase of 27% over the year before. We note that the salary portion, which stands at RM546.8k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysia Packaging industry with market capitalizations below RM849m, reported a median total CEO compensation of RM212k. Hence, we can conclude that Marc Francis Yeoh is remunerated higher than the industry median.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Can-One Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Can-One Berhad's Growth

Can-One Berhad has seen its earnings per share (EPS) increase by 5.8% a year over the past three years. It achieved revenue growth of 2.6% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Can-One Berhad Been A Good Investment?

With a total shareholder return of -35% over three years, Can-One Berhad shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Can-One Berhad you should be aware of, and 1 of them is concerning.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.