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

Key Insights

• Focus Lumber Berhad to hold its Annual General Meeting on 23rd of May
• Salary of RM756.0k is part of CEO Hao-Wen Lin's total remuneration
• The overall pay is comparable to the industry average
• Focus Lumber Berhad's three-year loss to shareholders was 49% while its EPS was down 99% over the past three years

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The underwhelming share price performance of Focus Lumber Berhad (KLSE:FLBHD) in the past three years would have disappointed many shareholders. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 23rd of May, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

View our latest analysis for Focus Lumber Berhad

How Does Total Compensation For Hao-Wen Lin Compare With Other Companies In The Industry?

According to our data, Focus Lumber Berhad has a market capitalization of RM71m, and paid its CEO total annual compensation worth RM839k over the year to December 2024. We note that's a decrease of 9.6% compared to last year. Notably, the salary which is RM756.0k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysia Forestry industry with market capitalizations below RM859m, reported a median total CEO compensation of RM845k. This suggests that Focus Lumber Berhad remunerates its CEO largely in line with the industry average. Furthermore, Hao-Wen Lin directly owns RM3.4m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. It's interesting to note that Focus Lumber Berhad pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Focus Lumber Berhad's Growth

Over the last three years, Focus Lumber Berhad has shrunk its earnings per share by 99% per year. In the last year, its revenue is up 50%.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Focus Lumber Berhad Been A Good Investment?

With a total shareholder return of -49% over three years, Focus Lumber Berhad shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The company's earnings haven't grown and possibly because of that, the stock has performed poorly, resulting in a loss for the company's shareholders. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Focus Lumber Berhad you should be aware of, and 2 of them make us uncomfortable.

Switching gears from Focus Lumber 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. 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.