It's Probably Less Likely That Tri-Mode System (M) Berhad's (KLSE:TRIMODE) CEO Will See A Huge Pay Rise This Year

Key Insights

• Tri-Mode System (M) Berhad will host its Annual General Meeting on 19th of June
• Salary of RM552.0k is part of CEO Han Hew's total remuneration
• The total compensation is similar to the average for the industry
• Tri-Mode System (M) Berhad's three-year loss to shareholders was 58% while its EPS was down 49% over the past three years

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Shareholders of Tri-Mode System (M) Berhad (KLSE:TRIMODE) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. The AGM coming up on 19th of June will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

View our latest analysis for Tri-Mode System (M) Berhad

How Does Total Compensation For Han Hew Compare With Other Companies In The Industry?

According to our data, Tri-Mode System (M) Berhad has a market capitalization of RM32m, and paid its CEO total annual compensation worth RM726k over the year to December 2024. That's a fairly small increase of 6.5% over the previous year. Notably, the salary which is RM552.0k, represents most of the total compensation being paid.

For comparison, other companies in the Malaysia Logistics industry with market capitalizations below RM849m, reported a median total CEO compensation of RM631k. From this we gather that Han Hew is paid around the median for CEOs in the industry. Moreover, Han Hew also holds RM16m worth of Tri-Mode System (M) Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 71% of total compensation represents salary, while the remainder of 29% is other remuneration. There isn't a significant difference between Tri-Mode System (M) Berhad and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Tri-Mode System (M) Berhad's Growth Numbers

Tri-Mode System (M) Berhad has reduced its earnings per share by 49% a year over the last three years. In the last year, its revenue is up 21%.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tri-Mode System (M) Berhad Been A Good Investment?

Few Tri-Mode System (M) Berhad shareholders would feel satisfied with the return of -58% over three years. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

The loss to shareholders over the past three years is certainly concerning and possibly has something to do with the fact that the company's earnings haven't grown. 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.

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 5 warning signs for Tri-Mode System (M) Berhad you should be aware of, and 4 of them are a bit unpleasant.

Switching gears from Tri-Mode System (M) 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.

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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.