Media Prima Berhad's (KLSE:MEDIA) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Media Prima Berhad will host its Annual General Meeting on 21st of November
• Total pay for CEO Mohd Bin Mat Razali includes RM945.0k salary
• The overall pay is 525% above the industry average
• Media Prima Berhad's EPS grew by 6.6% over the past three years while total shareholder return over the past three years was 4.2%

Under the guidance of CEO Mohd Bin Mat Razali, Media Prima Berhad (KLSE:MEDIA) 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 21st of November. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Media Prima Berhad

Comparing Media Prima Berhad's CEO Compensation With The Industry

Our data indicates that Media Prima Berhad has a market capitalization of RM521m, and total annual CEO compensation was reported as RM1.0m for the year to June 2024. Notably, that's a decrease of 33% over the year before. Notably, the salary which is RM945.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysia Media industry with market capitalizations below RM896m, we found that the median total CEO compensation was RM166k. Accordingly, our analysis reveals that Media Prima Berhad pays Mohd Bin Mat Razali north of the industry median.

Component	2024	2023	Proportion (2024)
Salary	RM945k	RM1.4m	91%
Other	RM91k	RM199k	9%
Total Compensation	RM1.0m	RM1.5m	100%

On an industry level, roughly 86% of total compensation represents salary and 14% is other remuneration. Media Prima 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.

Media Prima Berhad's Growth

Over the past three years, Media Prima Berhad has seen its earnings per share (EPS) grow by 6.6% per year. It saw its revenue drop 12% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see a modest EPS growth at least. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Media Prima Berhad Been A Good Investment?

With a total shareholder return of 4.2% over three years, Media Prima Berhad has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Media Prima Berhad (1 can't be ignored!) that you should be aware of before investing here.

Important note: Media Prima 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.

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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.