How Much Is Dominant Enterprise Berhad (KLSE:DOMINAN) CEO Getting Paid?

Geok Owee became the CEO of Dominant Enterprise Berhad (KLSE:DOMINAN) in 2015, 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 Dominant Enterprise Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Dominant Enterprise Berhad

How Does Total Compensation For Geok Owee Compare With Other Companies In The Industry?

Our data indicates that Dominant Enterprise Berhad has a market capitalization of RM124m, and total annual CEO compensation was reported as RM1.1m for the year to March 2020. Notably, that's a decrease of 30% over the year before. We note that the salary portion, which stands at RM1.00m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM808m, we found that the median total CEO compensation was RM529k. Hence, we can conclude that Geok Owee is remunerated higher than the industry median. What's more, Geok Owee holds RM603k worth of shares in the company in their own name.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Dominant Enterprise Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Dominant Enterprise Berhad's Growth Numbers

Dominant Enterprise Berhad has reduced its earnings per share by 29% a year over the last three years. In the last year, its revenue is down 17%.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Dominant Enterprise Berhad Been A Good Investment?

Since shareholders would have lost about 37% over three years, some Dominant Enterprise Berhad investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As previously discussed, Geok is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Add to that declining EPS growth, and you have the perfect recipe for shareholder irritation. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 5 warning signs for Dominant Enterprise Berhad (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Dominant Enterprise 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. 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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