Here's Why Shareholders Should Examine Kim Hin Joo (Malaysia) Berhad's (KLSE:KHJB) CEO Compensation Package More Closely

Key Insights

• Kim Hin Joo (Malaysia) Berhad's Annual General Meeting to take place on 28th of May
• CEO Fu Wei Pang's total compensation includes salary of RM318.0k
• The total compensation is similar to the average for the industry
• Over the past three years, Kim Hin Joo (Malaysia) Berhad's EPS fell by 101% and over the past three years, the total loss to shareholders 37%

Our free stock report includes 3 warning signs investors should be aware of before investing in Kim Hin Joo (Malaysia) Berhad. Read for free now.

Kim Hin Joo (Malaysia) Berhad (KLSE:KHJB) has not performed well recently and CEO Fu Wei Pang will probably need to up their game. At the upcoming AGM on 28th of May, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. We present the case why we think CEO compensation is out of sync with company performance.

Check out our latest analysis for Kim Hin Joo (Malaysia) Berhad

Comparing Kim Hin Joo (Malaysia) Berhad's CEO Compensation With The Industry

At the time of writing, our data shows that Kim Hin Joo (Malaysia) Berhad has a market capitalization of RM53m, and reported total annual CEO compensation of RM350k for the year to December 2024. There was no change in the compensation compared to last year. Notably, the salary which is RM318.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysian Specialty Retail industry with market capitalizations below RM854m, we found that the median total CEO compensation was RM349k. So it looks like Kim Hin Joo (Malaysia) Berhad compensates Fu Wei Pang in line with the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	RM318k	RM318k	91%
Other	RM32k	RM32k	9%
Total Compensation	RM350k	RM350k	100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. Although there is a difference in how total compensation is set, Kim Hin Joo (Malaysia) 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.

Kim Hin Joo (Malaysia) Berhad's Growth

Kim Hin Joo (Malaysia) Berhad has reduced its earnings per share by 101% a year over the last three years. In the last year, its revenue is down 3.4%.

Few shareholders would be pleased to read that EPS have declined. 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. 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 Kim Hin Joo (Malaysia) Berhad Been A Good Investment?

Few Kim Hin Joo (Malaysia) Berhad shareholders would feel satisfied with the return of -37% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Kim Hin Joo (Malaysia) Berhad (2 are a bit unpleasant!) that you should be aware of before investing here.

Important note: Kim Hin Joo (Malaysia) Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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.