We Think Some Shareholders May Hesitate To Increase Dominant Enterprise Berhad's (KLSE:DOMINAN) CEO Compensation

Key Insights

• Dominant Enterprise Berhad will host its Annual General Meeting on 25th of August
• CEO Geok Owee's total compensation includes salary of RM480.0k
• The total compensation is 81% higher than the average for the industry
• Over the past three years, Dominant Enterprise Berhad's EPS fell by 6.7% and over the past three years, the total shareholder return was 0.04%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

The anaemic share price growth at Dominant Enterprise Berhad (KLSE:DOMINAN) over the past few years has probably not impressed shareholders and may be due to earnings not growing over that period. The upcoming AGM on 25th of August may be an opportunity for shareholders to bring up any concerns they may have for the board’s attention. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

See our latest analysis for Dominant Enterprise Berhad

Comparing Dominant Enterprise Berhad's CEO Compensation With The Industry

Our data indicates that Dominant Enterprise Berhad has a market capitalization of RM133m, and total annual CEO compensation was reported as RM1.5m for the year to March 2025. That's a notable increase of 41% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM480k.

For comparison, other companies in the Malaysia Forestry industry with market capitalizations below RM844m, reported a median total CEO compensation of RM844k. This suggests that Geok Owee is paid more than the median for the industry. Furthermore, Geok Owee directly owns RM647k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 67% of total compensation represents salary and 33% is other remuneration. Dominant Enterprise Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Dominant Enterprise Berhad's Growth

Over the last three years, Dominant Enterprise Berhad has shrunk its earnings per share by 6.7% per year. In the last year, its revenue is down 4.3%.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Dominant Enterprise Berhad Been A Good Investment?

Dominant Enterprise Berhad has generated a total shareholder return of 0.04% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The lacklustre share price returns along with the lack of earnings growth makes us think that a strong rebound in the share price may be difficult. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Dominant Enterprise Berhad that investors should be aware of in a dynamic business environment.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.