It's Unlikely That Tiong Nam Logistics Holdings Berhad's (KLSE:TNLOGIS) CEO Will See A Huge Pay Rise This Year

Key Insights

• Tiong Nam Logistics Holdings Berhad will host its Annual General Meeting on 24th of August
• Salary of RM2.08m is part of CEO Yoong Nyock Ong's total remuneration
• The overall pay is 205% above the industry average
• Tiong Nam Logistics Holdings Berhad's three-year loss to shareholders was 9.2% while its EPS grew by 66% over the past three years

In the past three years, shareholders of Tiong Nam Logistics Holdings Berhad (KLSE:TNLOGIS) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 24th of August could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

See 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 RM404m, and paid its CEO total annual compensation worth RM2.1m over the year to March 2024. That is, the compensation was roughly the same as last year. It is worth noting that the CEO compensation consists entirely of the salary, worth RM2.1m.

On comparing similar-sized companies in the Malaysia Logistics industry with market capitalizations below RM887m, we found that the median total CEO compensation was RM681k. Accordingly, our analysis reveals that Tiong Nam Logistics Holdings Berhad pays Yoong Nyock Ong north of the industry median. Moreover, Yoong Nyock Ong also holds RM101m worth of Tiong Nam Logistics Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	RM2.1m	RM2.0m	100%
Other	-	-	-
Total Compensation	RM2.1m	RM2.0m	100%

On an industry level, roughly 73% of total compensation represents salary and 27% 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 salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Tiong Nam Logistics Holdings Berhad's Growth

Tiong Nam Logistics Holdings Berhad has seen its earnings per share (EPS) increase by 66% a year over the past three years. Its revenue is up 4.5% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Tiong Nam Logistics Holdings Berhad Been A Good Investment?

Since shareholders would have lost about 9.2% over three years, some Tiong Nam Logistics Holdings Berhad investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Tiong Nam Logistics Holdings Berhad pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Tiong Nam Logistics Holdings Berhad you should be aware of, and 1 of them is significant.

Important note: Tiong Nam Logistics Holdings Berhad is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.