Our View On Eupe Corporation Berhad's (KLSE:EUPE) CEO Pay

Huck Beh has been the CEO of Eupe Corporation Berhad (KLSE:EUPE) since 1997, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Eupe Corporation Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Eupe Corporation Berhad

Comparing Eupe Corporation Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Eupe Corporation Berhad has a market capitalization of RM106m, and reported total annual CEO compensation of RM781k for the year to February 2020. That is, the compensation was roughly the same as last year. Notably, the salary which is RM771.3k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM811m, the reported median total CEO compensation was RM805k. This suggests that Eupe Corporation Berhad remunerates its CEO largely in line with the industry average. Moreover, Huck Beh also holds RM2.9m worth of Eupe Corporation Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. Eupe Corporation Berhad pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Eupe Corporation Berhad's Growth Numbers

Eupe Corporation Berhad has seen its earnings per share (EPS) increase by 136% a year over the past three years. In the last year, its revenue changed by just 0.5%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Eupe Corporation Berhad Been A Good Investment?

With a three year total loss of 9.6% for the shareholders, Eupe Corporation Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Huck receives almost all of their compensation through a salary. As we noted earlier, Eupe Corporation Berhad pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, the company has logged negative shareholder returns over the previous three years. But EPS growth is moving in a favorable direction, certainly a positive sign. Overall, we wouldn't say Huck is paid an unjustified compensation, but shareholders might not favor a raise before shareholder returns show a positive trend.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 3 warning signs for Eupe Corporation Berhad that investors should think about before committing capital to this stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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