It's Unlikely That JKG Land Berhad's (KLSE:JKGLAND) CEO Will See A Huge Pay Rise This Year

Performance at JKG Land Berhad (KLSE:JKGLAND) has been reasonably good and CEO Kean Teh has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 08 July 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for JKG Land Berhad

Comparing JKG Land Berhad's CEO Compensation With the industry

Our data indicates that JKG Land Berhad has a market capitalization of RM227m, and total annual CEO compensation was reported as RM1.3m for the year to January 2021. That's a slight decrease of 5.6% on the prior year. Notably, the salary which is RM987.9k, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below RM831m, reported a median total CEO compensation of RM781k. Hence, we can conclude that Kean Teh is remunerated higher than the industry median.

Component	2021	2020	Proportion (2021)
Salary	RM988k	RM1.1m	74%
Other	RM356k	RM356k	26%
Total Compensation	RM1.3m	RM1.4m	100%

On an industry level, around 74% of total compensation represents salary and 26% is other remuneration. Although there is a difference in how total compensation is set, JKG Land Berhad more or less reflects the market in terms of setting the salary. 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 JKG Land Berhad's Growth Numbers

JKG Land Berhad has seen its earnings per share (EPS) increase by 17% a year over the past three years. Its revenue is down 1.5% 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. 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 JKG Land Berhad Been A Good Investment?

JKG Land Berhad has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for JKG Land Berhad (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

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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