How Much Is See Hup Consolidated Berhad's (KLSE:SEEHUP) CEO Getting Paid?

This article will reflect on the compensation paid to Chor Lee who has served as CEO of See Hup Consolidated Berhad (KLSE:SEEHUP) since 2008. This analysis will also assess whether See Hup Consolidated Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for See Hup Consolidated Berhad

Comparing See Hup Consolidated Berhad's CEO Compensation With the industry

According to our data, See Hup Consolidated Berhad has a market capitalization of RM119m, and paid its CEO total annual compensation worth RM587k over the year to March 2020. That's a slightly lower by 4.6% over the previous year. We note that the salary portion, which stands at RM499.5k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below RM811m, we found that the median total CEO compensation was RM705k. So it looks like See Hup Consolidated Berhad compensates Chor Lee in line with the median for the industry. Furthermore, Chor Lee directly owns RM1.6m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. Although there is a difference in how total compensation is set, See Hup Consolidated Berhad more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

See Hup Consolidated Berhad's Growth

See Hup Consolidated Berhad has reduced its earnings per share by 78% a year over the last three years. Its revenue is down 20% over the previous year.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet 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 See Hup Consolidated Berhad Been A Good Investment?

See Hup Consolidated Berhad has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

As we touched on above, See Hup Consolidated 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. See Hup Consolidated Berhad has had a poor showing when it comes to EPS growth, and it's tough to say that shareholder returns have done much to excite us. These figures do not go well against CEO compensation, which is more or less equal to the industry median. Considering all of this, we can't say the CEO is underpaid, and moving forward shareholders will likely want to see higher growth to justify any raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 3 warning signs for See Hup Consolidated Berhad (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from See Hup Consolidated 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. 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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