It's Unlikely That Hua Yang Berhad's (KLSE:HUAYANG) CEO Will See A Huge Pay Rise This Year

Key Insights

• Hua Yang Berhad to hold its Annual General Meeting on 5th of September
• CEO Wen Yan Ho's total compensation includes salary of RM1.12m
• Total compensation is 45% above industry average
• Hua Yang Berhad's total shareholder return over the past three years was 6.9% while its EPS grew by 114% over the past three years

Performance at Hua Yang Berhad (KLSE:HUAYANG) has been reasonably good and CEO Wen Yan Ho has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 5th of September, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Hua Yang Berhad

Comparing Hua Yang Berhad's CEO Compensation With The Industry

Our data indicates that Hua Yang Berhad has a market capitalization of RM136m, and total annual CEO compensation was reported as RM1.3m for the year to March 2024. Notably, that's an increase of 47% over the year before. We note that the salary portion, which stands at RM1.12m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Malaysian Real Estate industry with market capitalizations below RM862m, we found that the median total CEO compensation was RM886k. This suggests that Wen Yan Ho is paid more than the median for the industry. Moreover, Wen Yan Ho also holds RM699k worth of Hua Yang Berhad stock directly under their own name.

Component	2024	2023	Proportion (2024)
Salary	RM1.1m	RM769k	87%
Other	RM167k	RM107k	13%
Total Compensation	RM1.3m	RM876k	100%

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. It's interesting to note that Hua Yang Berhad pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Hua Yang Berhad's Growth

Hua Yang Berhad has seen its earnings per share (EPS) increase by 114% a year over the past three years. In the last year, its revenue is up 51%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Hua Yang Berhad Been A Good Investment?

Hua Yang Berhad has not done too badly by shareholders, with a total return of 6.9%, over three years. It would be nice to see that metric improve in the future. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for Hua Yang Berhad that investors should think about before committing capital to this stock.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.