Some Shareholders May Object To A Pay Rise For ViTrox Corporation Berhad's (KLSE:VITROX) CEO This Year

Key Insights

• ViTrox Corporation Berhad will host its Annual General Meeting on 29th of May
• CEO Jenn Chu's total compensation includes salary of RM228.7k
• The overall pay is 63% below the industry average
• ViTrox Corporation Berhad's EPS declined by 20% over the past three years while total shareholder loss over the past three years was 13%

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The underwhelming performance at ViTrox Corporation Berhad (KLSE:VITROX) recently has probably not pleased shareholders. There is an opportunity for shareholders to influence management to turn the performance around by voting on resolutions such as executive remuneration at the AGM coming up on 29th of May. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

See our latest analysis for ViTrox Corporation Berhad

Comparing ViTrox Corporation Berhad's CEO Compensation With The Industry

Our data indicates that ViTrox Corporation Berhad has a market capitalization of RM6.0b, and total annual CEO compensation was reported as RM356k for the year to December 2024. That's a slight decrease of 6.9% on the prior year. Notably, the salary which is RM228.7k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysian Semiconductor industry with market capitalizations ranging between RM4.3b and RM14b had a median total CEO compensation of RM964k. That is to say, Jenn Chu is paid under the industry median. What's more, Jenn Chu holds RM1.6b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. In ViTrox Corporation Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader 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.

ViTrox Corporation Berhad's Growth

ViTrox Corporation Berhad has reduced its earnings per share by 20% a year over the last three years. Its revenue is up 3.7% over the last year.

Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has ViTrox Corporation Berhad Been A Good Investment?

Since shareholders would have lost about 13% over three years, some ViTrox Corporation Berhad investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a 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.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 1 warning sign for ViTrox Corporation Berhad that investors should look into moving forward.

Switching gears from ViTrox Corporation 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. 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.