How Much Is Asian Pac Holdings Berhad's (KLSE:ASIAPAC) CEO Getting Paid?

Mustapha Bin Buang became the CEO of Asian Pac Holdings Berhad (KLSE:ASIAPAC) in 2001, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Asian Pac Holdings Berhad.

Check out our latest analysis for Asian Pac Holdings Berhad

Comparing Asian Pac Holdings Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Asian Pac Holdings Berhad has a market capitalization of RM125m, and reported total annual CEO compensation of RM1.9m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at RM1.72m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM817m, we found that the median total CEO compensation was RM802k. Accordingly, our analysis reveals that Asian Pac Holdings Berhad pays Mustapha Bin Buang north of the industry median. What's more, Mustapha Bin Buang holds RM4.0m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 83% of total compensation represents salary and 17% is other remuneration. There isn't a significant difference between Asian Pac Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Asian Pac Holdings Berhad's Growth Numbers

Asian Pac Holdings Berhad has seen its earnings per share (EPS) increase by 57% a year over the past three years. In the last year, its revenue is up 11%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Asian Pac Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 29% over three years, many shareholders in Asian Pac Holdings Berhad are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, Asian Pac Holdings Berhad is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, we must not forget that the EPS growth has been very strong, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we'd stop short of calling it inappropriate, we think Mustapha is earning a very handsome sum.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 2 which are significant) in Asian Pac Holdings Berhad we think you should know about.

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. 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.
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