How Much Is Pantech Group Holdings Berhad (KLSE:PANTECH) Paying Its CEO?

Jimmy Chew became the CEO of Pantech Group Holdings Berhad (KLSE:PANTECH) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Pantech Group Holdings Berhad

How Does Total Compensation For Jimmy Chew Compare With Other Companies In The Industry?

At the time of writing, our data shows that Pantech Group Holdings Berhad has a market capitalization of RM302m, and reported total annual CEO compensation of RM481k for the year to February 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at RM463.0k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM811m, we found that the median total CEO compensation was RM685k. From this we gather that Jimmy Chew is paid around the median for CEOs in the industry. What's more, Jimmy Chew holds RM3.6m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. Pantech Group Holdings Berhad is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Pantech Group Holdings Berhad's Growth Numbers

Pantech Group Holdings Berhad has reduced its earnings per share by 19% a year over the last three years. It saw its revenue drop 8.6% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Pantech Group Holdings Berhad Been A Good Investment?

With a three year total loss of 28% for the shareholders, Pantech Group Holdings Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Pantech Group Holdings Berhad pays its CEO a majority of compensation through a salary. As previously discussed, Jimmy is compensated close to the median for companies of its size, and which belong to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 3 warning signs for Pantech Group Holdings Berhad that investors should think about before committing capital to this stock.

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.

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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.
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