It's Unlikely That Karyon Industries Berhad's (KLSE:KARYON) CEO Will See A Huge Pay Rise This Year

Key Insights

• Karyon Industries Berhad to hold its Annual General Meeting on 10th of September
• CEO Ling Chua's total compensation includes salary of RM789.5k
• The overall pay is 2,859% above the industry average
• Over the past three years, Karyon Industries Berhad's EPS grew by 4.3% and over the past three years, the total loss to shareholders 12%

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As many shareholders of Karyon Industries Berhad (KLSE:KARYON) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 10th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Karyon Industries Berhad

Comparing Karyon Industries Berhad's CEO Compensation With The Industry

According to our data, Karyon Industries Berhad has a market capitalization of RM71m, and paid its CEO total annual compensation worth RM1.8m over the year to March 2025. We note that's an increase of 18% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM790k.

For comparison, other companies in the Malaysian Chemicals industry with market capitalizations below RM846m, reported a median total CEO compensation of RM61k. Hence, we can conclude that Ling Chua is remunerated higher than the industry median. Furthermore, Ling Chua directly owns RM5.0m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 54% of total compensation represents salary, while the remainder of 46% is other remuneration. Karyon Industries Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Karyon Industries Berhad's Growth Numbers

Karyon Industries Berhad has seen its earnings per share (EPS) increase by 4.3% a year over the past three years. In the last year, its revenue is up 3.4%.

We'd prefer higher revenue growth, but it is good to see modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Karyon Industries Berhad Been A Good Investment?

Since shareholders would have lost about 12% over three years, some Karyon Industries Berhad investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for Karyon Industries Berhad that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.