We Discuss Why Thriven Global Berhad's (KLSE:THRIVEN) CEO Compensation May Be Closely Reviewed

Key Insights

• Thriven Global Berhad to hold its Annual General Meeting on 17th of June
• Salary of RM860.9k is part of CEO Ghazie bin Abdullah's total remuneration
• The total compensation is 115% higher than the average for the industry
• Thriven Global Berhad's EPS declined by 16% over the past three years while total shareholder loss over the past three years was 43%

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Shareholders will probably not be too impressed with the underwhelming results at Thriven Global Berhad (KLSE:THRIVEN) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 17th of June. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

View our latest analysis for Thriven Global Berhad

Comparing Thriven Global Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that Thriven Global Berhad has a market capitalization of RM44m, and reported total annual CEO compensation of RM1.6m for the year to December 2024. That's a notable decrease of 28% on last year. In particular, the salary of RM860.9k, makes up a fairly large portion of the total compensation being paid to the CEO.

In comparison with other companies in the Malaysian Real Estate industry with market capitalizations under RM848m, the reported median total CEO compensation was RM758k. Accordingly, our analysis reveals that Thriven Global Berhad pays Ghazie bin Abdullah north of the industry median. Moreover, Ghazie bin Abdullah also holds RM1.9m worth of Thriven Global Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

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. It's interesting to note that Thriven Global Berhad allocates a smaller portion of compensation to salary 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.

A Look at Thriven Global Berhad's Growth Numbers

Over the last three years, Thriven Global Berhad has shrunk its earnings per share by 16% per year. Its revenue is down 57% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Thriven Global Berhad Been A Good Investment?

The return of -43% over three years would not have pleased Thriven Global Berhad shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 3 warning signs for Thriven Global Berhad you should be aware of, and 2 of them can't be ignored.

Switching gears from Thriven Global Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.