Shareholders May Be More Conservative With Paramount Corporation Berhad's (KLSE:PARAMON) CEO Compensation For Now

Key Insights

• Paramount Corporation Berhad's Annual General Meeting to take place on 5th of June
• Salary of RM2.04m is part of CEO Jeffrey Chew's total remuneration
• The total compensation is 241% higher than the average for the industry
• Over the past three years, Paramount Corporation Berhad's EPS grew by 51% and over the past three years, the total shareholder return was 118%

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CEO Jeffrey Chew has done a decent job of delivering relatively good performance at Paramount Corporation Berhad (KLSE:PARAMON) 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 5th of June. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Paramount Corporation Berhad

Comparing Paramount Corporation Berhad's CEO Compensation With The Industry

According to our data, Paramount Corporation Berhad has a market capitalization of RM673m, and paid its CEO total annual compensation worth RM5.0m over the year to December 2024. Notably, that's an increase of 29% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at RM2.0m.

On comparing similar companies from the Malaysian Real Estate industry with market caps ranging from RM424m to RM1.7b, we found that the median CEO total compensation was RM1.5m. Hence, we can conclude that Jeffrey Chew is remunerated higher than the industry median. Furthermore, Jeffrey Chew directly owns RM11m worth of shares in the company, implying that they are deeply invested in the company's success.

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 Paramount Corporation Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Paramount Corporation Berhad's Growth

Over the past three years, Paramount Corporation Berhad has seen its earnings per share (EPS) grow by 51% per year. It achieved revenue growth of 12% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Paramount Corporation Berhad Been A Good Investment?

Most shareholders would probably be pleased with Paramount Corporation Berhad for providing a total return of 118% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

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, 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 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 Paramount Corporation Berhad that investors should think about before committing capital to this 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.