It's Unlikely That Eco World International Berhad's (KLSE:EWINT) CEO Will See A Huge Pay Rise This Year

Key Insights

• Eco World International Berhad will host its Annual General Meeting on 27th of March
• CEO Leong Teow's total compensation includes salary of RM1.72m
• Total compensation is 135% above industry average
• Over the past three years, Eco World International Berhad's EPS grew by 15% and over the past three years, the total shareholder return was 70%

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CEO Leong Teow has done a decent job of delivering relatively good performance at Eco World International Berhad (KLSE:EWINT) 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 27th of March. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Eco World International Berhad

How Does Total Compensation For Leong Teow Compare With Other Companies In The Industry?

Our data indicates that Eco World International Berhad has a market capitalization of RM552m, and total annual CEO compensation was reported as RM1.8m for the year to October 2024. That is, the compensation was roughly the same as last year. Notably, the salary which is RM1.72m, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysian Real Estate industry with market capitalizations below RM886m, we found that the median total CEO compensation was RM756k. Accordingly, our analysis reveals that Eco World International Berhad pays Leong Teow north of the industry median. Moreover, Leong Teow also holds RM3.5m worth of Eco World International Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Investors will find it interesting that Eco World International Berhad pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Eco World International Berhad's Growth

Eco World International Berhad's earnings per share (EPS) grew 15% per year over the last three years. Its revenue is down 68% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Eco World International Berhad Been A Good Investment?

Boasting a total shareholder return of 70% over three years, Eco World International 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.

To Conclude...

Leong receives almost all of their compensation through a salary. 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, 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Eco World International Berhad (of which 2 are a bit concerning!) that you should know about in order to have a holistic understanding of the 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.