Shareholders Will Probably Not Have Any Issues With Press Metal Aluminium Holdings Berhad's (KLSE:PMETAL) CEO Compensation

Key Insights

• Press Metal Aluminium Holdings Berhad to hold its Annual General Meeting on 27th of June
• Total pay for CEO Poh Koon includes RM1.91m salary
• Total compensation is similar to the industry average
• Press Metal Aluminium Holdings Berhad's total shareholder return over the past three years was 21% while its EPS grew by 33% over the past three years

CEO Poh Koon has done a decent job of delivering relatively good performance at Press Metal Aluminium Holdings Berhad (KLSE:PMETAL) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 27th of June. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Press Metal Aluminium Holdings Berhad

Comparing Press Metal Aluminium Holdings Berhad's CEO Compensation With The Industry

According to our data, Press Metal Aluminium Holdings Berhad has a market capitalization of RM47b, and paid its CEO total annual compensation worth RM2.8m over the year to December 2023. We note that's an increase of 8.9% above last year. We note that the salary portion, which stands at RM1.91m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Metals and Mining industry with market capitalizations above RM38b, reported a median total CEO compensation of RM2.5m. This suggests that Press Metal Aluminium Holdings Berhad remunerates its CEO largely in line with the industry average. Furthermore, Poh Koon directly owns RM1.4b worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	RM1.9m	RM1.9m	68%
Other	RM903k	RM673k	32%
Total Compensation	RM2.8m	RM2.6m	100%

On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. Our data reveals that Press Metal Aluminium Holdings Berhad allocates salary more or less in line with the wider market. 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.

Press Metal Aluminium Holdings Berhad's Growth

Press Metal Aluminium Holdings Berhad has seen its earnings per share (EPS) increase by 33% a year over the past three years. Its revenue is down 3.3% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Press Metal Aluminium Holdings Berhad Been A Good Investment?

Press Metal Aluminium Holdings Berhad has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Despite the pleasing results, we still think that any proposed increases to CEO compensation will be examined based on a case by case basis and linked to performance outcomes.

So you may want to check if insiders are buying Press Metal Aluminium Holdings Berhad shares with their own money (free access).

Important note: Press Metal Aluminium Holdings Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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