Stock Analysis

Shareholders May Be More Conservative With Ta Ann Holdings Berhad's (KLSE:TAANN) CEO Compensation For Now

KLSE:TAANN
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Under the guidance of CEO Kuo Hea Wong, Ta Ann Holdings Berhad (KLSE:TAANN) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18 June 2021. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Ta Ann Holdings Berhad

Comparing Ta Ann Holdings Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Ta Ann Holdings Berhad has a market capitalization of RM1.3b, and reported total annual CEO compensation of RM1.9m for the year to December 2020. Notably, that's an increase of 18% over the year before. Notably, the salary which is RM1.29m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between RM825m and RM3.3b had a median total CEO compensation of RM1.2m. This suggests that Kuo Hea Wong is paid more than the median for the industry. Furthermore, Kuo Hea Wong directly owns RM53m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20202019Proportion (2020)
Salary RM1.3m RM1.3m 69%
Other RM582k RM294k 31%
Total CompensationRM1.9m RM1.6m100%

On an industry level, around 90% of total compensation represents salary and 10% is other remuneration. It's interesting to note that Ta Ann Holdings Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

ceo-compensation
KLSE:TAANN CEO Compensation June 11th 2021

A Look at Ta Ann Holdings Berhad's Growth Numbers

Ta Ann Holdings Berhad's earnings per share (EPS) grew 4.2% per year over the last three years. Its revenue is up 28% over the last year.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. We'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ta Ann Holdings Berhad Been A Good Investment?

With a total shareholder return of 15% over three years, Ta Ann Holdings Berhad shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Ta Ann Holdings Berhad that investors should think about before committing capital to this stock.

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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