We Take A Look At Whether YTL Corporation Berhad's (KLSE:YTL) CEO May Be Underpaid

Key Insights

• YTL Corporation Berhad will host its Annual General Meeting on 5th of December
• Salary of RM1.27m is part of CEO Michael Yeoh's total remuneration
• The overall pay is 75% below the industry average
• YTL Corporation Berhad's EPS grew by 79% over the past three years while total shareholder return over the past three years was 303%

Shareholders will be pleased by the impressive results for YTL Corporation Berhad (KLSE:YTL) recently and CEO Michael Yeoh has played a key role. This would be kept in mind at the upcoming AGM on 5th of December which will be a chance for them to hear the board review the financial results, discuss future company strategy and vote on resolutions such as executive remuneration and other matters. We think the CEO has done a pretty decent job and probably deserves a well-earned pay rise.

View our latest analysis for YTL Corporation Berhad

How Does Total Compensation For Michael Yeoh Compare With Other Companies In The Industry?

According to our data, YTL Corporation Berhad has a market capitalization of RM23b, and paid its CEO total annual compensation worth RM2.2m over the year to June 2024. We note that's an increase of 33% above last year. We note that the salary of RM1.27m makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the Malaysia Integrated Utilities industry with market capitalizations between RM18b and RM53b, we discovered that the median CEO total compensation of that group was RM8.7m. That is to say, Michael Yeoh is paid under the industry median. Furthermore, Michael Yeoh directly owns RM162m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	RM1.3m	RM1.2m	59%
Other	RM887k	RM409k	41%
Total Compensation	RM2.2m	RM1.6m	100%

Talking in terms of the industry, salary represented approximately 20% of total compensation out of all the companies we analyzed, while other remuneration made up 80% of the pie. It's interesting to note that YTL Corporation Berhad pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

YTL Corporation Berhad's Growth

YTL Corporation Berhad has seen its earnings per share (EPS) increase by 79% a year over the past three years. In the last year, its revenue changed by just 0.3%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 YTL Corporation Berhad Been A Good Investment?

Boasting a total shareholder return of 303% over three years, YTL Corporation Berhad has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which can't be ignored) in YTL Corporation Berhad we think you should know about.

Important note: YTL 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.