Increases to CEO Compensation Might Be Put On Hold For Now at Amtel Holdings Berhad (KLSE:AMTEL)

Performance at Amtel Holdings Berhad (KLSE:AMTEL) has been reasonably good and CEO Hun Koid has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 05 May 2021. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Amtel Holdings Berhad

Comparing Amtel Holdings Berhad's CEO Compensation With the industry

Our data indicates that Amtel Holdings Berhad has a market capitalization of RM120m, and total annual CEO compensation was reported as RM742k for the year to November 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is RM555.0k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under RM819m, the reported median total CEO compensation was RM85k. This suggests that Hun Koid is paid more than the median for the industry. What's more, Hun Koid holds RM16m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2020	2019	Proportion (2020)
Salary	RM555k	RM600k	75%
Other	RM187k	RM137k	25%
Total Compensation	RM742k	RM737k	100%

On an industry level, around 71% of total compensation represents salary and 29% is other remuneration. There isn't a significant difference between Amtel Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Amtel Holdings Berhad's Growth

Amtel Holdings Berhad's earnings per share (EPS) grew 78% per year over the last three years. In the last year, its revenue changed by just 0.01%.

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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Amtel Holdings Berhad Been A Good Investment?

Most shareholders would probably be pleased with Amtel Holdings Berhad for providing a total return of 158% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Amtel Holdings Berhad you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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