How Much Is Jaya Tiasa Holdings Berhad (KLSE:JTIASA) CEO Getting Paid?

This article will reflect on the compensation paid to Sie Young Wong who has served as CEO of Jaya Tiasa Holdings Berhad (KLSE:JTIASA) since 2013. This analysis will also assess whether Jaya Tiasa Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Jaya Tiasa Holdings Berhad

How Does Total Compensation For Sie Young Wong Compare With Other Companies In The Industry?

Our data indicates that Jaya Tiasa Holdings Berhad has a market capitalization of RM910m, and total annual CEO compensation was reported as RM757k for the year to June 2020. Notably, that's a decrease of 32% over the year before. Notably, the salary which is RM548.6k, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between RM406m and RM1.6b had a median total CEO compensation of RM1.4m. This suggests that Sie Young Wong is paid below the industry median. Moreover, Sie Young Wong also holds RM427k worth of Jaya Tiasa Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Jaya Tiasa Holdings Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Jaya Tiasa Holdings Berhad's Growth

Over the last three years, Jaya Tiasa Holdings Berhad has shrunk its earnings per share by 30% per year. Its revenue is up 4.7% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Jaya Tiasa Holdings Berhad Been A Good Investment?

With a three year total loss of 12% for the shareholders, Jaya Tiasa Holdings Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Jaya Tiasa Holdings Berhad is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

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. That's why we did some digging and identified 1 warning sign for Jaya Tiasa Holdings Berhad that you should be aware of before investing.

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.

When trading Jaya Tiasa Holdings Berhad or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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