We Think Some Shareholders May Hesitate To Increase Land & General Berhad's (KLSE:L&G) CEO Compensation

Key Insights

• Land & General Berhad will host its Annual General Meeting on 18th of September
• CEO Gay Low's total compensation includes salary of RM1.07m
• Total compensation is 94% above industry average
• Land & General Berhad's EPS grew by 45% over the past three years while total shareholder return over the past three years was 40%

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Performance at Land & General Berhad (KLSE:L&G) has been reasonably good and CEO Gay Low has done a decent job of steering the company in the right direction. 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 18th of September. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Land & General Berhad

How Does Total Compensation For Gay Low Compare With Other Companies In The Industry?

At the time of writing, our data shows that Land & General Berhad has a market capitalization of RM357m, and reported total annual CEO compensation of RM1.5m for the year to March 2025. That's a modest increase of 4.1% on the prior year. We note that the salary portion, which stands at RM1.07m constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian Real Estate industry with market capitalizations below RM844m, reported a median total CEO compensation of RM792k. Accordingly, our analysis reveals that Land & General Berhad pays Gay Low north of the industry median.

On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. Land & General Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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.

Land & General Berhad's Growth

Over the past three years, Land & General Berhad has seen its earnings per share (EPS) grow by 45% per year. In the last year, its revenue is up 61%.

Shareholders would be glad to know that the company has improved itself over the last few years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Land & General Berhad Been A Good Investment?

Most shareholders would probably be pleased with Land & General Berhad for providing a total return of 40% over three years. 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...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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. We did our research and spotted 2 warning signs for Land & General Berhad that investors should look into moving forward.

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.