A Look At Iskandar Waterfront City Berhad's (KLSE:IWCITY) CEO Remuneration

Calvin Wong became the CEO of Iskandar Waterfront City Berhad (KLSE:IWCITY) in 2015, 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 assess whether Iskandar Waterfront City Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Iskandar Waterfront City Berhad

Comparing Iskandar Waterfront City Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Iskandar Waterfront City Berhad has a market capitalization of RM469m, and reported total annual CEO compensation of RM913k for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of RM826.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM812m, we found that the median total CEO compensation was RM802k. So it looks like Iskandar Waterfront City Berhad compensates Calvin Wong in line with the median for the industry.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. It's interesting to note that Iskandar Waterfront City Berhad pays out a greater portion of remuneration through salary, compared to the 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 Iskandar Waterfront City Berhad's Growth Numbers

Over the last three years, Iskandar Waterfront City Berhad has shrunk its earnings per share by 50% per year. It saw its revenue drop 43% over the last year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Iskandar Waterfront City Berhad Been A Good Investment?

Since shareholders would have lost about 56% over three years, some Iskandar Waterfront City Berhad investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Iskandar Waterfront City Berhad pays its CEO in line with similar-sized companies belonging to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

So you may want to check if insiders are buying Iskandar Waterfront City Berhad shares with their own money (free access).

Switching gears from Iskandar Waterfront City 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. 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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