We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Notion VTec Berhad's (KLSE:NOTION) CEO For Now

Key Insights

• Notion VTec Berhad to hold its Annual General Meeting on 5th of March
• Salary of RM1.13m is part of CEO William Choo's total remuneration
• The overall pay is 242% above the industry average
• Notion VTec Berhad's total shareholder return over the past three years was 146% while its EPS grew by 60% over the past three years

CEO William Choo has done a decent job of delivering relatively good performance at Notion VTec Berhad (KLSE:NOTION) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 5th of March. However, some shareholders will still be cautious of paying the CEO excessively.

See our latest analysis for Notion VTec Berhad

Comparing Notion VTec Berhad's CEO Compensation With The Industry

According to our data, Notion VTec Berhad has a market capitalization of RM429m, and paid its CEO total annual compensation worth RM1.6m over the year to September 2024. We note that's an increase of 13% above last year. In particular, the salary of RM1.13m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Malaysian Electronic industry with market capitalizations below RM885m, we found that the median total CEO compensation was RM464k. Accordingly, our analysis reveals that Notion VTec Berhad pays William Choo north of the industry median. What's more, William Choo holds RM29m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM1.1m	RM1.1m	71%
Other	RM458k	RM319k	29%
Total Compensation	RM1.6m	RM1.4m	100%

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. Notion VTec Berhad sets aside a smaller share of compensation for salary, in comparison to the overall industry. 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 Notion VTec Berhad's Growth Numbers

Over the past three years, Notion VTec Berhad has seen its earnings per share (EPS) grow by 60% per year. In the last year, its revenue is up 46%.

This demonstrates that the company has been improving recently and is good news for the shareholders. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Notion VTec Berhad Been A Good Investment?

Most shareholders would probably be pleased with Notion VTec Berhad for providing a total return of 146% over three years. 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.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 can't be ignored) in Notion VTec Berhad we think you should know about.

Switching gears from Notion VTec Berhad, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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.