Does HeveaBoard Berhad's (KLSE:HEVEA) CEO Pay Reflect Performance?

In 2012 Hau Yoong was appointed CEO of HeveaBoard Berhad (KLSE:HEVEA). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for HeveaBoard Berhad

How Does Hau Yoong's Compensation Compare With Similar Sized Companies?

According to our data, HeveaBoard Berhad has a market capitalization of RM295m, and paid its CEO total annual compensation worth RM1.5m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at RM1.0m. We took a group of companies with market capitalizations below RM816m, and calculated the median CEO total compensation to be RM600k.

As you can see, Hau Yoong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean HeveaBoard Berhad is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at HeveaBoard Berhad has changed over time.

Is HeveaBoard Berhad Growing?

Over the last three years HeveaBoard Berhad has shrunk its earnings per share by an average of 67% per year (measured with a line of best fit). It saw its revenue drop 7.4% over the last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has HeveaBoard Berhad Been A Good Investment?

With a three year total loss of 58%, HeveaBoard Berhad would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We examined the amount HeveaBoard Berhad pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Earnings per share have not grown in three years, and the revenue growth fails to impress us. Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at HeveaBoard Berhad.

If you want to buy a stock that is better than HeveaBoard Berhad, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.