Shareholders Will Probably Hold Off On Increasing Golden Land Berhad's (KLSE:GLBHD) CEO Compensation For The Time Being

Key Insights

• Golden Land Berhad to hold its Annual General Meeting on 26th of November
• Salary of RM1.46m is part of CEO Phing Yap's total remuneration
• Total compensation is 138% above industry average
• Golden Land Berhad's three-year loss to shareholders was 39% while its EPS grew by 10% over the past three years

The underwhelming share price performance of Golden Land Berhad (KLSE:GLBHD) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 26th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Golden Land Berhad

How Does Total Compensation For Phing Yap Compare With Other Companies In The Industry?

According to our data, Golden Land Berhad has a market capitalization of RM58m, and paid its CEO total annual compensation worth RM1.8m over the year to June 2024. That's a notable decrease of 8.2% on last year. In particular, the salary of RM1.46m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Malaysian Real Estate industry with market capitalizations under RM894m, the reported median total CEO compensation was RM757k. Accordingly, our analysis reveals that Golden Land Berhad pays Phing Yap north of the industry median. Moreover, Phing Yap also holds RM20m worth of Golden Land Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	RM1.5m	RM1.5m	81%
Other	RM341k	RM503k	19%
Total Compensation	RM1.8m	RM2.0m	100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. According to our research, Golden Land Berhad has allocated a higher percentage of pay to salary in comparison to the wider industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Golden Land Berhad's Growth

Golden Land Berhad has seen its earnings per share (EPS) increase by 10% a year over the past three years. Its revenue is up 57% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Golden Land Berhad Been A Good Investment?

Few Golden Land Berhad shareholders would feel satisfied with the return of -39% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Golden Land Berhad you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.