We Think Some Shareholders May Hesitate To Increase Rhone Ma Holdings Berhad's (KLSE:RHONEMA) CEO Compensation

Key Insights

• Rhone Ma Holdings Berhad will host its Annual General Meeting on 11th of June
• Total pay for CEO I-Ie Lim includes RM403.2k salary
• The total compensation is 212% higher than the average for the industry
• Rhone Ma Holdings Berhad's total shareholder return over the past three years was 1.2% while its EPS grew by 11% over the past three years

CEO I-Ie Lim has done a decent job of delivering relatively good performance at Rhone Ma Holdings Berhad (KLSE:RHONEMA) 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 11th of June. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Rhone Ma Holdings Berhad

Comparing Rhone Ma Holdings Berhad's CEO Compensation With The Industry

According to our data, Rhone Ma Holdings Berhad has a market capitalization of RM144m, and paid its CEO total annual compensation worth RM998k over the year to December 2023. We note that's an increase of 45% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at RM403k.

In comparison with other companies in the Malaysia Pharmaceuticals industry with market capitalizations under RM940m, the reported median total CEO compensation was RM320k. Hence, we can conclude that I-Ie Lim is remunerated higher than the industry median. Moreover, I-Ie Lim also holds RM7.3m worth of Rhone Ma Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	RM403k	RM403k	40%
Other	RM595k	RM287k	60%
Total Compensation	RM998k	RM690k	100%

Talking in terms of the industry, salary represented approximately 73% of total compensation out of all the companies we analyzed, while other remuneration made up 27% of the pie. Rhone Ma Holdings Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Rhone Ma Holdings Berhad's Growth Numbers

Over the past three years, Rhone Ma Holdings Berhad has seen its earnings per share (EPS) grow by 11% per year. It achieved revenue growth of 2.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Rhone Ma Holdings Berhad Been A Good Investment?

Rhone Ma Holdings Berhad has not done too badly by shareholders, with a total return of 1.2%, over three years. It would be nice to see that metric improve in the future. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is 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 2 warning signs for Rhone Ma 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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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.