How Much Is Classic Scenic Berhad (KLSE:CSCENIC) Paying Its CEO?

Samuel Lim became the CEO of Classic Scenic Berhad (KLSE:CSCENIC) in 2004, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Classic Scenic Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Classic Scenic Berhad

Comparing Classic Scenic Berhad's CEO Compensation With the industry

Our data indicates that Classic Scenic Berhad has a market capitalization of RM110m, and total annual CEO compensation was reported as RM381k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at RM357.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM812m, we found that the median total CEO compensation was RM526k. This suggests that Classic Scenic Berhad remunerates its CEO largely in line with the industry average.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Classic Scenic 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.

Classic Scenic Berhad's Growth

Classic Scenic Berhad has reduced its earnings per share by 30% a year over the last three years. In the last year, its revenue is down 26%.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Classic Scenic Berhad Been A Good Investment?

With a three year total loss of 34% for the shareholders, Classic Scenic Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we noted earlier, Classic Scenic Berhad pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 4 warning signs (and 1 which shouldn't be ignored) in Classic Scenic Berhad we think you should know about.

Important note: Classic Scenic 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.

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This article by Simply Wall St is general in nature. 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.
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