Shareholders May Be More Conservative With Malakoff Corporation Berhad's (KLSE:MALAKOF) CEO Compensation For Now

Key Insights

• Malakoff Corporation Berhad to hold its Annual General Meeting on 29th of April
• Total pay for CEO Anwar Bin Abdul Ajib includes RM1.73m salary
• The overall pay is 321% above the industry average
• Malakoff Corporation Berhad's total shareholder return over the past three years was 39% while its EPS grew by 0.6% over the past three years

We've discovered 2 warning signs about Malakoff Corporation Berhad. View them for free.

Performance at Malakoff Corporation Berhad (KLSE:MALAKOF) has been reasonably good and CEO Anwar Bin Abdul Ajib has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 29th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

View our latest analysis for Malakoff Corporation Berhad

Comparing Malakoff Corporation Berhad's CEO Compensation With The Industry

According to our data, Malakoff Corporation Berhad has a market capitalization of RM3.8b, and paid its CEO total annual compensation worth RM1.9m over the year to December 2024. We note that's a decrease of 27% compared to last year. We note that the salary portion, which stands at RM1.73m 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 RM1.8b to RM7.0b, we found that the median CEO total compensation was RM461k. This suggests that Anwar Bin Abdul Ajib is paid more than the median for the industry.

Component	2024	2023	Proportion (2024)
Salary	RM1.7m	RM2.6m	89%
Other	RM213k	RM90k	11%
Total Compensation	RM1.9m	RM2.7m	100%

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. Malakoff Corporation Berhad is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Malakoff Corporation Berhad's Growth Numbers

Malakoff Corporation Berhad saw earnings per share stay pretty flat over the last three years. It saw its revenue drop 1.1% over the last year.

We would prefer it if there was revenue growth, but the modest EPS growth gives us some relief. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Malakoff Corporation Berhad Been A Good Investment?

Most shareholders would probably be pleased with Malakoff Corporation Berhad for providing a total return of 39% over three years. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which is significant) in Malakoff Corporation Berhad we think you should know about.

Important note: Malakoff Corporation 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.