How Does GD Express Carrier Bhd's (KLSE:GDEX) CEO Pay Compare With Company Performance?

This article will reflect on the compensation paid to Teck Teong who has served as CEO of GD Express Carrier Bhd (KLSE:GDEX) since 2013. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for GD Express Carrier Bhd.

View our latest analysis for GD Express Carrier Bhd

How Does Total Compensation For Teck Teong Compare With Other Companies In The Industry?

Our data indicates that GD Express Carrier Bhd has a market capitalization of RM2.5b, and total annual CEO compensation was reported as RM366k for the year to June 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is RM333.2k, represents most of the total compensation being paid.

On comparing similar companies from the same industry with market caps ranging from RM1.6b to RM6.5b, we found that the median CEO total compensation was RM2.2m. Accordingly, GD Express Carrier Bhd pays its CEO under the industry median. What's more, Teck Teong holds RM62m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. GD Express Carrier Bhd is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at GD Express Carrier Bhd's Growth Numbers

GD Express Carrier Bhd has reduced its earnings per share by 21% a year over the last three years. In the last year, its revenue is up 16%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has GD Express Carrier Bhd Been A Good Investment?

Since shareholders would have lost about 26% over three years, some GD Express Carrier Bhd investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Teck is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But poor shareholder returns EPS growth have hampered the company over the past three years. Conversely, revenues are increasing at a healthy pace, recently. Though we believe Teck is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for GD Express Carrier Bhd that you should be aware of before investing.

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.

If you decide to trade GD Express Carrier Bhd, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.