Here's Why It's Unlikely That Censof Holdings Berhad's (KLSE:CENSOF) CEO Will See A Pay Rise This Year

Key Insights

• Censof Holdings Berhad's Annual General Meeting to take place on 11th of September
• Total pay for CEO Ameer bin Shaik Mydin includes RM515.0k salary
• The total compensation is 126% higher than the average for the industry
• Censof Holdings Berhad's three-year loss to shareholders was 16% while its EPS was down 30% over the past three years

The results at Censof Holdings Berhad (KLSE:CENSOF) have been quite disappointing recently and CEO Ameer bin Shaik Mydin bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 11th of September. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Censof Holdings Berhad

Comparing Censof Holdings Berhad's CEO Compensation With The Industry

According to our data, Censof Holdings Berhad has a market capitalization of RM157m, and paid its CEO total annual compensation worth RM655k over the year to March 2024. That's slightly lower by 5.2% over the previous year. Notably, the salary which is RM515.0k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysia Software industry with market capitalizations below RM871m, reported a median total CEO compensation of RM290k. Hence, we can conclude that Ameer bin Shaik Mydin is remunerated higher than the industry median. Furthermore, Ameer bin Shaik Mydin directly owns RM405k worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	RM515k	RM515k	79%
Other	RM140k	RM176k	21%
Total Compensation	RM655k	RM691k	100%

On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. There isn't a significant difference between Censof Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. 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.

Censof Holdings Berhad's Growth

Censof Holdings Berhad has reduced its earnings per share by 30% a year over the last three years. It achieved revenue growth of 3.6% over the last year.

Overall this is not a very positive result for shareholders. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Censof Holdings Berhad Been A Good Investment?

Since shareholders would have lost about 16% over three years, some Censof Holdings Berhad investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. 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 2 warning signs for Censof Holdings Berhad that investors should look into moving forward.

Switching gears from Censof Holdings 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.