MUI Properties Berhad's (KLSE:MUIPROP) CEO Looks Like They Deserve Their Pay Packet

Key Insights

• MUI Properties Berhad will host its Annual General Meeting on 4th of December
• Salary of RM600.0k is part of CEO Andrew Khoo's total remuneration
• Total compensation is similar to the industry average
• MUI Properties Berhad's EPS grew by 16% over the past three years while total shareholder return over the past three years was 103%

The performance at MUI Properties Berhad (KLSE:MUIPROP) has been quite strong recently and CEO Andrew Khoo has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 4th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

See our latest analysis for MUI Properties Berhad

Comparing MUI Properties Berhad's CEO Compensation With The Industry

According to our data, MUI Properties Berhad has a market capitalization of RM248m, and paid its CEO total annual compensation worth RM665k over the year to June 2024. Notably, that's an increase of 43% over the year before. We note that the salary portion, which stands at RM600.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the Malaysian Real Estate industry with market capitalizations under RM889m, the reported median total CEO compensation was RM754k. From this we gather that Andrew Khoo is paid around the median for CEOs in the industry. What's more, Andrew Khoo holds RM771k worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM600k	RM400k	90%
Other	RM65k	RM64k	10%
Total Compensation	RM665k	RM464k	100%

On an industry level, roughly 70% of total compensation represents salary and 30% is other remuneration. It's interesting to note that MUI Properties Berhad pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at MUI Properties Berhad's Growth Numbers

MUI Properties Berhad's earnings per share (EPS) grew 16% per year over the last three years. Its revenue is down 23% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has MUI Properties Berhad Been A Good Investment?

We think that the total shareholder return of 103%, over three years, would leave most MUI Properties Berhad shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Given the company's decent performance, the CEO remuneration policy might not be shareholders' central point of focus in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for MUI Properties Berhad that you should be aware of before investing.

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.

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.