P.A. Resources Berhad's (KLSE:PA) CEO Will Probably Have Their Compensation Approved By Shareholders

We have been pretty impressed with the performance at P.A. Resources Berhad (KLSE:PA) recently and CEO Kuan Lau deserves a mention for their role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 15 December 2022. 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 P.A. Resources Berhad

How Does Total Compensation For Kuan Lau Compare With Other Companies In The Industry?

At the time of writing, our data shows that P.A. Resources Berhad has a market capitalization of RM412m, and reported total annual CEO compensation of RM992k for the year to June 2022. That's a notable increase of 20% on last year. In particular, the salary of RM684.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below RM880m, reported a median total CEO compensation of RM867k. From this we gather that Kuan Lau is paid around the median for CEOs in the industry. What's more, Kuan Lau holds RM17m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2022	2021	Proportion (2022)
Salary	RM684k	RM579k	69%
Other	RM308k	RM245k	31%
Total Compensation	RM992k	RM824k	100%

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. P.A. Resources Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at P.A. Resources Berhad's Growth Numbers

Over the past three years, P.A. Resources Berhad has seen its earnings per share (EPS) grow by 106% per year. In the last year, its revenue is up 75%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 P.A. Resources Berhad Been A Good Investment?

Most shareholders would probably be pleased with P.A. Resources Berhad for providing a total return of 144% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for P.A. Resources Berhad you should be aware of, and 1 of them doesn't sit too well with us.

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.

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

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.