Shareholders May Not Be So Generous With Harbour-Link Group Berhad's (KLSE:HARBOUR) CEO Compensation And Here's Why

Key Insights

• Harbour-Link Group Berhad's Annual General Meeting to take place on 27th of November
• CEO Francis Yong's total compensation includes salary of RM830.0k
• Total compensation is 177% above industry average
• Over the past three years, Harbour-Link Group Berhad's EPS fell by 7.6% and over the past three years, the total shareholder return was 50%

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Despite strong share price growth of 50% for Harbour-Link Group Berhad (KLSE:HARBOUR) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 27th of November. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. From what we gathered, we think shareholders should be wary of raising CEO compensation until the company shows some marked improvement.

Check out our latest analysis for Harbour-Link Group Berhad

Comparing Harbour-Link Group Berhad's CEO Compensation With The Industry

Our data indicates that Harbour-Link Group Berhad has a market capitalization of RM590m, and total annual CEO compensation was reported as RM952k for the year to June 2025. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is RM830.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Malaysia Shipping industry with market capitalizations below RM831m, we found that the median total CEO compensation was RM344k. This suggests that Francis Yong is paid more than the median for the industry. Moreover, Francis Yong also holds RM59m worth of Harbour-Link Group Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2025	2024	Proportion (2025)
Salary	RM830k	RM806k	87%
Other	RM122k	RM153k	13%
Total Compensation	RM952k	RM959k	100%

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. According to our research, Harbour-Link Group Berhad has allocated a higher percentage of pay to salary in comparison to the wider industry. 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 Harbour-Link Group Berhad's Growth Numbers

Over the last three years, Harbour-Link Group Berhad has shrunk its earnings per share by 7.6% per year. In the last year, its revenue is up 9.6%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Harbour-Link Group Berhad Been A Good Investment?

Boasting a total shareholder return of 50% over three years, Harbour-Link Group Berhad has done well by shareholders. 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...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. In the upcoming AGM, shareholders will get the opportunity to discuss any concerns with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 1 warning sign for Harbour-Link Group Berhad that investors should think about before committing capital to this stock.

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. 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.