Why Apex Healthcare Berhad's (KLSE:AHEALTH) CEO Pay Matters

Kirk Kee has been the CEO of Apex Healthcare Berhad (KLSE:AHEALTH) since 2010, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Apex Healthcare Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Apex Healthcare Berhad

How Does Total Compensation For Kirk Kee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Apex Healthcare Berhad has a market capitalization of RM1.8b, and reported total annual CEO compensation of RM341k for the year to December 2019. That's a notable decrease of 37% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM99k.

On examining similar-sized companies in the industry with market capitalizations between RM820m and RM3.3b, we discovered that the median CEO total compensation of that group was RM1.1m. Accordingly, Apex Healthcare Berhad pays its CEO under the industry median. What's more, Kirk Kee holds RM19m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. Apex Healthcare Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Apex Healthcare Berhad's Growth Numbers

Apex Healthcare Berhad has seen its earnings per share (EPS) increase by 13% a year over the past three years. It achieved revenue growth of 3.9% over the last year.

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 Apex Healthcare Berhad Been A Good Investment?

Boasting a total shareholder return of 198% over three years, Apex Healthcare Berhad has done well by shareholders. 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.

In Summary...

As we touched on above, Apex Healthcare Berhad is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. When taking into account the company's strong EPS growth over the past three years, it appears CEO compensation is modest. 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.

CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Apex Healthcare Berhad (free visualization of insider trades).

Switching gears from Apex Healthcare 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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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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