Here's What We Learned About The CEO Pay At Scientex Berhad (KLSE:SCIENTX)

Peng Jin Lim has been the CEO of Scientex Berhad (KLSE:SCIENTX) since 2001, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Scientex Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Scientex Berhad

How Does Total Compensation For Peng Jin Lim Compare With Other Companies In The Industry?

At the time of writing, our data shows that Scientex Berhad has a market capitalization of RM6.6b, and reported total annual CEO compensation of RM474k for the year to July 2020. We note that's a decrease of 29% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at RM100k.

In comparison with other companies in the industry with market capitalizations ranging from RM4.0b to RM13b, the reported median CEO total compensation was RM2.2m. In other words, Scientex Berhad pays its CEO lower than the industry median. Moreover, Peng Jin Lim also holds RM235m worth of Scientex Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. It's interesting to note that Scientex Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Scientex Berhad's Growth Numbers

Scientex Berhad's earnings per share (EPS) grew 10% per year over the last three years. The trailing twelve months of revenue was pretty much the same as the prior period.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Scientex Berhad Been A Good Investment?

Most shareholders would probably be pleased with Scientex Berhad for providing a total return of 54% 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...

As previously discussed, Peng Jin is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Considering robust EPS growth, we believe Peng Jin to be modestly paid. Plus, we can't ignore the impressive shareholder returns, and won't be surprised if some shareholders were to reward such excellent all-around performance with a raise.

Shareholders may want to check for free if Scientex Berhad insiders are buying or selling shares.

Switching gears from Scientex Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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