Does Tiong Nam Logistics Holdings Berhad's (KLSE:TNLOGIS) CEO Salary Compare Well With The Performance Of The Company?

Yoong Nyock Ong is the CEO of Tiong Nam Logistics Holdings Berhad (KLSE:TNLOGIS), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Tiong Nam Logistics Holdings Berhad

Comparing Tiong Nam Logistics Holdings Berhad's CEO Compensation With the industry

According to our data, Tiong Nam Logistics Holdings Berhad has a market capitalization of RM416m, and paid its CEO total annual compensation worth RM880k over the year to March 2020. That's just a smallish increase of 6.3% on last year. Notably, the salary of RM880k is the entirety of the CEO compensation.

In comparison with other companies in the industry with market capitalizations under RM811m, the reported median total CEO compensation was RM139k. Accordingly, our analysis reveals that Tiong Nam Logistics Holdings Berhad pays Yoong Nyock Ong north of the industry median. What's more, Yoong Nyock Ong holds RM105m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 98% of total compensation represents salary, while the remainder of 1.6% is other remuneration. Speaking on a company level, Tiong Nam Logistics Holdings Berhad prefers to tread along a traditional path, disbursing all compensation through a salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Tiong Nam Logistics Holdings Berhad's Growth Numbers

Tiong Nam Logistics Holdings Berhad has reduced its earnings per share by 85% a year over the last three years. Its revenue is down 4.0% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Tiong Nam Logistics Holdings Berhad Been A Good Investment?

With a three year total loss of 27% for the shareholders, Tiong Nam Logistics Holdings Berhad would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Tiong Nam Logistics Holdings Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Tiong Nam Logistics Holdings Berhad is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Tiong Nam Logistics Holdings Berhad (1 doesn't sit too well with us!) 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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