Shareholders Will Most Likely Find Dominant Enterprise Berhad's (KLSE:DOMINAN) CEO Compensation Acceptable

Key Insights

• Dominant Enterprise Berhad to hold its Annual General Meeting on 26th of August
• Total pay for CEO Geok Owee includes RM480.0k salary
• The total compensation is similar to the average for the industry
• Dominant Enterprise Berhad's total shareholder return over the past three years was 21% while its EPS grew by 3.3% over the past three years

Performance at Dominant Enterprise Berhad (KLSE:DOMINAN) has been reasonably good and CEO Geok Owee has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of August. We present our case of why we think CEO compensation looks fair.

View 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 RM142m, and total annual CEO compensation was reported as RM1.1m for the year to March 2024. That's just a smallish increase of 7.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM480k.

On comparing similar-sized companies in the Malaysia Forestry industry with market capitalizations below RM876m, we found that the median total CEO compensation was RM917k. From this we gather that Geok Owee is paid around the median for CEOs in the industry. What's more, Geok Owee holds RM692k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM480k	RM480k	44%
Other	RM601k	RM523k	56%
Total Compensation	RM1.1m	RM1.0m	100%

Speaking on an industry level, nearly 77% of total compensation represents salary, while the remainder of 23% is other remuneration. It's interesting to note that Dominant Enterprise Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Dominant Enterprise Berhad's Growth

Over the past three years, Dominant Enterprise Berhad has seen its earnings per share (EPS) grow by 3.3% per year. In the last year, its revenue is up 11%.

We would argue that the modest growth in revenue is a notable positive. And the modest growth in EPS isn't bad, either. So while performance isn't amazing, we think it really does seem quite respectable. 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?

Dominant Enterprise Berhad has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

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. We did our research and identified 3 warning signs (and 1 which is significant) in Dominant Enterprise Berhad we think you should know about.

Important note: Dominant Enterprise 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. 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.