Shareholders May Be More Conservative With Tambun Indah Land Berhad's (KLSE:TAMBUN) CEO Compensation For Now

Key Insights

• Tambun Indah Land Berhad will host its Annual General Meeting on 19th of June
• Salary of RM1.76m is part of CEO Deng Wei Teh's total remuneration
• Total compensation is 257% above industry average
• Tambun Indah Land Berhad's total shareholder return over the past three years was 9.6% while its EPS was down 16% over the past three years

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The share price of Tambun Indah Land Berhad (KLSE:TAMBUN) has been growing in the past few years, however, the per-share earnings growth has been lacking, suggesting something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 19th of June. It would also be an opportunity for them to influence management through exercising their voting power on company resolutions, including CEO and executive remuneration, which could impact on firm performance in the future. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

View our latest analysis for Tambun Indah Land Berhad

How Does Total Compensation For Deng Wei Teh Compare With Other Companies In The Industry?

According to our data, Tambun Indah Land Berhad has a market capitalization of RM338m, and paid its CEO total annual compensation worth RM2.9m over the year to December 2024. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is RM1.76m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Malaysian Real Estate industry with market capitalizations below RM844m, reported a median total CEO compensation of RM822k. Accordingly, our analysis reveals that Tambun Indah Land Berhad pays Deng Wei Teh north of the industry median. Moreover, Deng Wei Teh also holds RM385k worth of Tambun Indah Land Berhad stock directly under their own name.

Talking in terms of the industry, salary represented approximately 69% of total compensation out of all the companies we analyzed, while other remuneration made up 31% of the pie. In Tambun Indah Land Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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.

Tambun Indah Land Berhad's Growth

Tambun Indah Land Berhad has reduced its earnings per share by 16% a year over the last three years. Its revenue is down 18% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Tambun Indah Land Berhad Been A Good Investment?

With a total shareholder return of 9.6% over three years, Tambun Indah Land Berhad has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

While it's true that shareholders have owned decent returns, it's hard to overlook the lack of earnings growth and this makes us question whether these returns will continue. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Tambun Indah Land 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.

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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.