Shareholders Will Probably Hold Off On Increasing Golden Land Berhad's (KLSE:GLBHD) CEO Compensation For The Time Being

Shareholders of Golden Land Berhad (KLSE:GLBHD) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 25 November 2022 could be an opportunity for shareholders to bring these concerns to the board's attention. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out the opportunities and risks within the MY Real Estate industry.

Comparing Golden Land Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that Golden Land Berhad has a market capitalization of RM64m, and reported total annual CEO compensation of RM2.3m for the year to June 2022. We note that's an increase of 48% above last year. We note that the salary portion, which stands at RM1.46m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under RM910m, the reported median total CEO compensation was RM670k. Hence, we can conclude that Phing Yap is remunerated higher than the industry median. Moreover, Phing Yap also holds RM23m worth of Golden Land Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2022	2021	Proportion (2022)
Salary	RM1.5m	RM1.4m	64%
Other	RM837k	RM204k	36%
Total Compensation	RM2.3m	RM1.6m	100%

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. Golden Land Berhad pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Golden Land Berhad's Growth Numbers

Over the past three years, Golden Land Berhad has seen its earnings per share (EPS) grow by 11% per year. Its revenue is down 29% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Golden Land Berhad Been A Good Investment?

With a three year total loss of 29% for the shareholders, Golden Land Berhad would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 2 warning signs (and 1 which is a bit concerning) in Golden Land Berhad we think you should know about.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.