Suria Capital Holdings Berhad's (KLSE:SURIA) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Suria Capital Holdings Berhad's Annual General Meeting to take place on 25th of June
• Total pay for CEO Kiat Ng includes RM642.0k salary
• The overall pay is 301% above the industry average
• Over the past three years, Suria Capital Holdings Berhad's EPS fell by 11% and over the past three years, the total shareholder return was 61%

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Despite strong share price growth of 61% for Suria Capital Holdings Berhad (KLSE:SURIA) over the last few years, earnings growth has been disappointing, which suggests something is amiss. Some of these issues will occupy shareholders' minds as the AGM rolls around on 25th of June. One way that shareholders can influence managerial decisions is through voting on CEO and executive remuneration packages, which studies show could impact company performance. In our analysis below, we show why shareholders may consider holding off a raise for the CEO's compensation until company performance improves.

See our latest analysis for Suria Capital Holdings Berhad

Comparing Suria Capital Holdings Berhad's CEO Compensation With The Industry

According to our data, Suria Capital Holdings Berhad has a market capitalization of RM578m, and paid its CEO total annual compensation worth RM1.0m over the year to December 2024. Notably, that's an increase of 18% over the year before. Notably, the salary which is RM642.0k, represents most of the total compensation being paid.

In comparison with other companies in the Malaysia Infrastructure industry with market capitalizations under RM850m, the reported median total CEO compensation was RM255k. Hence, we can conclude that Kiat Ng is remunerated higher than the industry median. Furthermore, Kiat Ng directly owns RM630k worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. Our data reveals that Suria Capital Holdings Berhad allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Suria Capital Holdings Berhad's Growth

Over the last three years, Suria Capital Holdings Berhad has shrunk its earnings per share by 11% per year. It saw its revenue drop 16% over the last year.

Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Suria Capital Holdings Berhad Been A Good Investment?

Most shareholders would probably be pleased with Suria Capital Holdings Berhad for providing a total return of 61% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its 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. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

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. We've identified 1 warning sign for Suria Capital Holdings Berhad that investors should be aware of in a dynamic business environment.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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.