Does IQ Group Holdings Berhad's (KLSE:IQGROUP) CEO Salary Compare Well With Industry Peers?

Daniel Beasley became the CEO of IQ Group Holdings Berhad (KLSE:IQGROUP) in 2006, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether IQ Group Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for IQ Group Holdings Berhad

How Does Total Compensation For Daniel Beasley Compare With Other Companies In The Industry?

Our data indicates that IQ Group Holdings Berhad has a market capitalization of RM107m, and total annual CEO compensation was reported as RM1.5m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of RM1.13m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under RM810m, the reported median total CEO compensation was RM70k. Hence, we can conclude that Daniel Beasley is remunerated higher than the industry median.

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. IQ Group Holdings Berhad is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

IQ Group Holdings Berhad's Growth

Over the last three years, IQ Group Holdings Berhad has shrunk its earnings per share by 110% per year. Revenue was pretty flat on last year.

The decline in EPS is a bit concerning. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 IQ Group Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 30% over three years, many shareholders in IQ Group Holdings 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 touched on above, IQ Group Holdings Berhad is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. This doesn't look good against shareholder returns, which have been negative for the past three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which makes us a bit uncomfortable) in IQ Group Holdings Berhad we think you should know about.

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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