We Take A Look At Why YTL Power International Berhad's (KLSE:YTLPOWR) CEO Compensation Is Well Earned

Key Insights

• YTL Power International Berhad will host its Annual General Meeting on 5th of December
• Salary of RM4.78m is part of CEO Seok Yeoh's total remuneration
• The total compensation is similar to the average for the industry
• Over the past three years, YTL Power International Berhad's EPS grew by 65% and over the past three years, the total shareholder return was 530%

The performance at YTL Power International Berhad (KLSE:YTLPOWR) has been quite strong recently and CEO Seok Yeoh has played a role in it. Shareholders will have this at the front of their minds in the upcoming AGM on 5th of December. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Check out our latest analysis for YTL Power International Berhad

Comparing YTL Power International Berhad's CEO Compensation With The Industry

Our data indicates that YTL Power International Berhad has a market capitalization of RM28b, and total annual CEO compensation was reported as RM8.0m for the year to June 2024. Notably, that's an increase of 34% over the year before. We note that the salary of RM4.78m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Malaysia Integrated Utilities industry with market capitalizations ranging from RM18b to RM53b, the reported median CEO total compensation was RM8.7m. From this we gather that Seok Yeoh is paid around the median for CEOs in the industry. Furthermore, Seok Yeoh directly owns RM569m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	RM4.8m	RM4.6m	59%
Other	RM3.3m	RM1.4m	41%
Total Compensation	RM8.0m	RM6.0m	100%

On an industry level, around 20% of total compensation represents salary and 80% is other remuneration. YTL Power International Berhad pays out 59% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at YTL Power International Berhad's Growth Numbers

YTL Power International Berhad has seen its earnings per share (EPS) increase by 65% a year over the past three years. In the last year, its revenue changed by just 0.3%.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has YTL Power International Berhad Been A Good Investment?

Boasting a total shareholder return of 530% over three years, YTL Power International 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.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

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. That's why we did our research, and identified 2 warning signs for YTL Power International Berhad (of which 1 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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

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.