Yahoo Finance GDB Holdings Berhad's (KLSE:GDB) CEO Might Not Expect Shareholders To Be So Generous This Year
Key Insights
GDB Holdings Berhad's Annual General Meeting to take place on 10th of June
Salary of RM588.0k is part of CEO Ham Cheah's total remuneration
The total compensation is similar to the average for the industry
GDB Holdings Berhad's EPS declined by 31% over the past three years while total shareholder loss over the past three years was 49%
Shareholders will probably not be too impressed with the underwhelming results at GDB Holdings Berhad (KLSE:GDB) recently. At the upcoming AGM on 10th of June, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.
Check out our latest analysis for GDB Holdings Berhad
Comparing GDB Holdings Berhad's CEO Compensation With The Industry
According to our data, GDB Holdings Berhad has a market capitalization of RM281m, and paid its CEO total annual compensation worth RM612k over the year to December 2023. This was the same as last year. In particular, the salary of RM588.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Malaysian Construction industry with market capitalizations under RM941m, the reported median total CEO compensation was RM724k. This suggests that GDB Holdings Berhad remunerates its CEO largely in line with the industry average.
Component | 2023 | 2022 | Proportion (2023) |
Salary | RM588k | RM588k | 96% |
Other | RM24k | RM24k | 4% |
Total Compensation | RM612k | RM612k | 100% |
Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. GDB Holdings Berhad is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at GDB Holdings Berhad's Growth Numbers
Over the last three years, GDB Holdings Berhad has shrunk its earnings per share by 31% per year. Its revenue is down 29% over the previous year.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has GDB Holdings Berhad Been A Good Investment?
Few GDB Holdings Berhad shareholders would feel satisfied with the return of -49% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
GDB Holdings Berhad pays its CEO a majority of compensation through a salary. Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for GDB Holdings Berhad you should be aware of, and 1 of them is potentially serious.
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.
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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.
