What Does M N C Wireless Berhad's (KLSE:MNC) CEO Pay Reveal?

This article will reflect on the compensation paid to Christopher Tan who has served as CEO of M N C Wireless Berhad (KLSE:MNC) since 2015. This analysis will also assess whether M N C Wireless Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for M N C Wireless Berhad

How Does Total Compensation For Christopher Tan Compare With Other Companies In The Industry?

According to our data, M N C Wireless Berhad has a market capitalization of RM88m, and paid its CEO total annual compensation worth RM274k over the year to April 2020. Notably, that's a decrease of 12% over the year before. We note that the salary portion, which stands at RM210.6k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under RM808m, the reported median total CEO compensation was RM145k. Hence, we can conclude that Christopher Tan is remunerated higher than the industry median. Furthermore, Christopher Tan directly owns RM6.7m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Our data reveals that M N C Wireless Berhad allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

M N C Wireless Berhad's Growth

M N C Wireless Berhad has reduced its earnings per share by 18% a year over the last three years. Its revenue is up 7.7% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 M N C Wireless Berhad Been A Good Investment?

Given the total shareholder loss of 41% over three years, many shareholders in M N C Wireless Berhad are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, M N C Wireless Berhad pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look good against shareholder returns, which have been negative for the past three years. What's equally worrying is that the company isn't growing by our analysis. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for M N C Wireless Berhad you should be aware of, and 2 of them are concerning.

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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This article by Simply Wall St is general in nature. 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.
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