What Can We Learn About Suria Capital Holdings Berhad's (KLSE:SURIA) CEO Compensation?

This article will reflect on the compensation paid to Kiat Ng who has served as CEO of Suria Capital Holdings Berhad (KLSE:SURIA) since 2015. This analysis will also assess whether Suria Capital Holdings Berhad pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Suria Capital Holdings Berhad

How Does Total Compensation For Kiat Ng Compare With Other Companies In The Industry?

Our data indicates that Suria Capital Holdings Berhad has a market capitalization of RM322m, and total annual CEO compensation was reported as RM896k for the year to December 2019. Notably, that's an increase of 22% over the year before. We note that the salary portion, which stands at RM852.0k constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under RM818m, the reported median total CEO compensation was RM827k. So it looks like Suria Capital Holdings Berhad compensates Kiat Ng in line with the median for the industry. What's more, Kiat Ng holds RM351k worth of shares in the company in their own name.

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. Suria Capital Holdings Berhad pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 Suria Capital Holdings Berhad's Growth Numbers

Suria Capital Holdings Berhad has reduced its earnings per share by 14% a year over the last three years. In the last year, its revenue is down 24%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Suria Capital Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 34% over three years, many shareholders in Suria Capital Holdings Berhad are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Kiat receives almost all of their compensation through a salary. As previously discussed, Kiat is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Suria Capital Holdings Berhad (1 is a bit unpleasant!) that you should be aware of before investing here.

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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