It's Probably Less Likely That CYL Corporation Berhad's (KLSE:CYL) CEO Will See A Huge Pay Rise This Year

In the past three years, the share price of CYL Corporation Berhad (KLSE:CYL) has struggled to generate growth for its shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 26 July 2021 could be an opportunity for shareholders to bring these concerns to the board's attention. 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 CYL Corporation Berhad

Comparing CYL Corporation Berhad's CEO Compensation With the industry

At the time of writing, our data shows that CYL Corporation Berhad has a market capitalization of RM49m, and reported total annual CEO compensation of RM624k for the year to January 2021. That is, the compensation was roughly the same as last year. Notably, the salary which is RM557.9k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM842m, the reported median total CEO compensation was RM624k. This suggests that CYL Corporation Berhad remunerates its CEO largely in line with the industry average. Furthermore, Yat Chen directly owns RM17m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2021	2020	Proportion (2021)
Salary	RM558k	RM544k	89%
Other	RM66k	RM65k	11%
Total Compensation	RM624k	RM609k	100%

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Our data reveals that CYL Corporation Berhad allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at CYL Corporation Berhad's Growth Numbers

CYL Corporation Berhad has seen its earnings per share (EPS) increase by 128% a year over the past three years. In the last year, its revenue is up 19%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 CYL Corporation Berhad Been A Good Investment?

Since shareholders would have lost about 10% over three years, some CYL Corporation Berhad investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which can't be ignored) in CYL Corporation Berhad we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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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