It's Unlikely That The CEO Of ManagePay Systems Berhad (KLSE:MPAY) Will See A Huge Pay Rise This Year

Key Insights

• ManagePay Systems Berhad will host its Annual General Meeting on 20th of December
• Total pay for CEO Chee Chew includes RM334.0k salary
• The total compensation is similar to the average for the industry
• ManagePay Systems Berhad's EPS grew by 14% over the past three years while total shareholder loss over the past three years was 46%

The underwhelming share price performance of ManagePay Systems Berhad (KLSE:MPAY) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 20th of December. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for ManagePay Systems Berhad

Comparing ManagePay Systems Berhad's CEO Compensation With The Industry

According to our data, ManagePay Systems Berhad has a market capitalization of RM108m, and paid its CEO total annual compensation worth RM423k over the year to June 2024. We note that's an increase of 23% above last year. We note that the salary portion, which stands at RM334.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the Malaysian IT industry with market capitalizations below RM890m, reported a median total CEO compensation of RM565k. So it looks like ManagePay Systems Berhad compensates Chee Chew in line with the median for the industry. Moreover, Chee Chew also holds RM27m worth of ManagePay Systems Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2022	Proportion (2024)
Salary	RM334k	RM201k	79%
Other	RM89k	RM144k	21%
Total Compensation	RM423k	RM345k	100%

Speaking on an industry level, nearly 79% of total compensation represents salary, while the remainder of 21% is other remuneration. There isn't a significant difference between ManagePay Systems 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.

ManagePay Systems Berhad's Growth

Over the past three years, ManagePay Systems Berhad has seen its earnings per share (EPS) grow by 14% per year. Its revenue is down 10% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. 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 ManagePay Systems Berhad Been A Good Investment?

With a total shareholder return of -46% over three years, ManagePay Systems Berhad shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 ManagePay Systems Berhad that you should be aware of before investing.

Important note: ManagePay Systems 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.