A Quick Analysis On Transocean Holdings Berhad's (KLSE:TOCEAN) CEO Salary

Mohd bin Mohd Salleh has been the CEO of Transocean Holdings Berhad (KLSE:TOCEAN) since 2009, and this article will examine the executive's compensation 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.

See our latest analysis for Transocean Holdings Berhad

How Does Total Compensation For Mohd bin Mohd Salleh Compare With Other Companies In The Industry?

Our data indicates that Transocean Holdings Berhad has a market capitalization of RM33m, and total annual CEO compensation was reported as RM338k for the year to December 2019. We note that's an increase of 24% above last year. Notably, the salary which is RM300.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below RM811m, we found that the median total CEO compensation was RM705k. Accordingly, Transocean Holdings Berhad pays its CEO under the industry median.

Speaking on an industry level, nearly 89% of total compensation represents salary, while the remainder of 11% is other remuneration. Our data reveals that Transocean 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.

A Look at Transocean Holdings Berhad's Growth Numbers

Over the last three years, Transocean Holdings Berhad has shrunk its earnings per share by 73% per year. In the last year, its revenue is down 21%.

The decline in EPS is a bit concerning. 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. 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 Transocean Holdings Berhad Been A Good Investment?

Boasting a total shareholder return of 40% over three years, Transocean Holdings Berhad has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

As we touched on above, Transocean Holdings Berhad is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. And while EPS growth is in the red, shareholder returns have been great over the last three years, so that's certainly a bright spot! So, while it would be nice to have better EPS growth, our analysis suggests CEO compensation is quite modest.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Transocean Holdings Berhad you should be aware of, and 2 of them are potentially serious.

Switching gears from Transocean Holdings 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.

If you’re looking to trade Transocean Holdings Berhad, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.