Key Things To Understand About K-One Technology Berhad's (KLSE:K1) CEO Pay Cheque

This article will reflect on the compensation paid to Martin Lim who has served as CEO of K-One Technology Berhad (KLSE:K1) since 2001. This analysis will also assess whether K-One Technology Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for K-One Technology Berhad

Comparing K-One Technology Berhad's CEO Compensation With the industry

According to our data, K-One Technology Berhad has a market capitalization of RM294m, and paid its CEO total annual compensation worth RM942k over the year to December 2019. We note that's an increase of 8.3% above last year. Notably, the salary of RM942k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under RM813m, the reported median total CEO compensation was RM70k. Hence, we can conclude that Martin Lim is remunerated higher than the industry median. Furthermore, Martin Lim directly owns RM39m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 75% of total compensation represents salary and 25% is other remuneration. At the company level, K-One Technology Berhad pays Martin Lim 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.

A Look at K-One Technology Berhad's Growth Numbers

K-One Technology Berhad's earnings per share (EPS) grew 82% per year over the last three years. Its revenue is down 3.0% over the previous year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 K-One Technology Berhad Been A Good Investment?

We think that the total shareholder return of 153%, over three years, would leave most K-One Technology Berhad shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

K-One Technology Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, K-One Technology Berhad pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. So, in acknowledgment of the overall excellent performance, we believe CEO compensation is appropriate. Given the strong history of shareholder returns, the shareholders are probably very happy with Martin's performance.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for K-One Technology Berhad that investors should look into moving forward.

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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