Digistar Corporation Berhad's (KLSE:DIGISTA) CEO Might Not Expect Shareholders To Be So Generous This Year

Key Insights

• Digistar Corporation Berhad will host its Annual General Meeting on 21st of March
• Total pay for CEO Wira Lee includes RM1.26m salary
• Total compensation is 103% above industry average
• Digistar Corporation Berhad's EPS declined by 3.8% over the past three years while total shareholder loss over the past three years was 63%

Digistar Corporation Berhad (KLSE:DIGISTA) has not performed well recently and CEO Wira Lee will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 21st of March. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

View our latest analysis for Digistar Corporation Berhad

Comparing Digistar Corporation Berhad's CEO Compensation With The Industry

Our data indicates that Digistar Corporation Berhad has a market capitalization of RM31m, and total annual CEO compensation was reported as RM1.3m for the year to September 2024. We note that's a small decrease of 3.1% on last year. It is worth noting that the CEO compensation consists entirely of the salary, worth RM1.3m.

For comparison, other companies in the Malaysian IT industry with market capitalizations below RM889m, reported a median total CEO compensation of RM618k. Hence, we can conclude that Wira Lee is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	RM1.3m	RM1.3m	100%
Other	-	-	-
Total Compensation	RM1.3m	RM1.3m	100%

Speaking on an industry level, nearly 83% of total compensation represents salary, while the remainder of 17% is other remuneration. At the company level, Digistar Corporation Berhad pays Wira Lee solely through a salary, preferring to go down a conventional route. 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.

Digistar Corporation Berhad's Growth

Over the last three years, Digistar Corporation Berhad has shrunk its earnings per share by 3.8% per year. In the last year, its revenue changed by just 0.8%.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue is seriously uninspiring. 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 Digistar Corporation Berhad Been A Good Investment?

With a total shareholder return of -63% over three years, Digistar Corporation Berhad shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Digistar Corporation Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. 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 CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 4 warning signs for Digistar Corporation Berhad that you should be aware of before investing.

Switching gears from Digistar 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.