Here's Why It's Unlikely That Malakoff Corporation Berhad's (KLSE:MALAKOF) CEO Will See A Pay Rise This Year

Key Insights

• Malakoff Corporation Berhad's Annual General Meeting to take place on 25th of April
• Total pay for CEO Anwar Bin Abdul Ajib includes RM2.57m salary
• The overall pay is 482% above the industry average
• Malakoff Corporation Berhad's three-year loss to shareholders was 3.6% while its EPS was down 96% over the past three years

Shareholders will probably not be too impressed with the underwhelming results at Malakoff Corporation Berhad (KLSE:MALAKOF) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of April. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for Malakoff Corporation Berhad

How Does Total Compensation For Anwar Bin Abdul Ajib Compare With Other Companies In The Industry?

Our data indicates that Malakoff Corporation Berhad has a market capitalization of RM3.1b, and total annual CEO compensation was reported as RM2.7m for the year to December 2023. We note that's an increase of 9.6% above last year. We note that the salary portion, which stands at RM2.57m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Malaysia Renewable Energy industry with market caps ranging from RM1.9b to RM7.6b, we found that the median CEO total compensation was RM457k. Hence, we can conclude that Anwar Bin Abdul Ajib is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	RM2.6m	RM2.3m	97%
Other	RM90k	RM87k	3%
Total Compensation	RM2.7m	RM2.4m	100%

On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. Investors will find it interesting that Malakoff Corporation Berhad pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Malakoff Corporation Berhad's Growth

Over the last three years, Malakoff Corporation Berhad has shrunk its earnings per share by 96% per year. Its revenue is down 12% over the previous year.

Few shareholders would be pleased to read that EPS have declined. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Malakoff Corporation Berhad Been A Good Investment?

Since shareholders would have lost about 3.6% over three years, some Malakoff Corporation Berhad investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Anwar receives almost all of their compensation through a salary. Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Malakoff Corporation Berhad (of which 1 can't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from Malakoff Corporation 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.