Shareholders Would Not Be Objecting To Lysaght Galvanized Steel Berhad's (KLSE:LYSAGHT) CEO Compensation And Here's Why

Key Insights

• Lysaght Galvanized Steel Berhad will host its Annual General Meeting on 13th of June
• CEO Tia Chua's total compensation includes salary of RM549.0k
• The total compensation is similar to the average for the industry
• Lysaght Galvanized Steel Berhad's total shareholder return over the past three years was 34% while its EPS grew by 66% over the past three years

We have been pretty impressed with the performance at Lysaght Galvanized Steel Berhad (KLSE:LYSAGHT) recently and CEO Tia Chua deserves a mention for their role in it. Coming up to the next AGM on 13th of June, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. Here is our take on why we think CEO compensation is not extravagant.

View our latest analysis for Lysaght Galvanized Steel Berhad

How Does Total Compensation For Tia Chua Compare With Other Companies In The Industry?

According to our data, Lysaght Galvanized Steel Berhad has a market capitalization of RM117m, and paid its CEO total annual compensation worth RM1.0m over the year to December 2023. That's a fairly small increase of 5.7% over the previous year. Notably, the salary which is RM549.0k, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Malaysian Metals and Mining industry with market capitalizations below RM939m, reported a median total CEO compensation of RM935k. This suggests that Lysaght Galvanized Steel Berhad remunerates its CEO largely in line with the industry average.

Component	2023	2022	Proportion (2023)
Salary	RM549k	RM549k	55%
Other	RM451k	RM397k	45%
Total Compensation	RM1.0m	RM946k	100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. Lysaght Galvanized Steel Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Lysaght Galvanized Steel Berhad's Growth

Lysaght Galvanized Steel Berhad has seen its earnings per share (EPS) increase by 66% a year over the past three years. Its revenue is up 27% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Lysaght Galvanized Steel Berhad Been A Good Investment?

Most shareholders would probably be pleased with Lysaght Galvanized Steel Berhad for providing a total return of 34% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 2 warning signs for Lysaght Galvanized Steel 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.