What Can We Conclude About Complete Logistic Services Berhad's (KLSE:COMPLET) CEO Pay?

Hee Law is the CEO of Complete Logistic Services Berhad (KLSE:COMPLET), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Complete Logistic Services Berhad

Comparing Complete Logistic Services Berhad's CEO Compensation With the industry

At the time of writing, our data shows that Complete Logistic Services Berhad has a market capitalization of RM86m, and reported total annual CEO compensation of RM738k for the year to March 2020. Notably, that's an increase of 8.7% over the year before. We note that the salary portion, which stands at RM384.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below RM813m, reported a median total CEO compensation of RM705k. This suggests that Complete Logistic Services Berhad remunerates its CEO largely in line with the industry average. Moreover, Hee Law also holds RM51m worth of Complete Logistic Services Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. It's interesting to note that Complete Logistic Services Berhad allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Complete Logistic Services Berhad's Growth

Over the past three years, Complete Logistic Services Berhad has seen its earnings per share (EPS) grow by 83% per year. It saw its revenue drop 43% over the last 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Complete Logistic Services Berhad Been A Good Investment?

We think that the total shareholder return of 47%, over three years, would leave most Complete Logistic Services Berhad shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

As we touched on above, Complete Logistic Services Berhad is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Few would be critical of the leadership, since returns have been juicy and EPS are moving in the right direction. So one could argue that CEO compensation is quite modest, if you consider company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Complete Logistic Services Berhad you should be aware of, and 1 of them is significant.

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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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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