It's Probably Less Likely That Parlo Berhad's (KLSE:PARLO) CEO Will See A Huge Pay Rise This Year
Key Insights
- Parlo Berhad's Annual General Meeting to take place on 20th of June
- Salary of RM378.0k is part of CEO Lian Ti's total remuneration
- Total compensation is similar to the industry average
- Parlo Berhad's three-year loss to shareholders was 78% while its EPS grew by 5.8% over the past three years
The underwhelming share price performance of Parlo Berhad (KLSE:PARLO) in the past three years would have disappointed many shareholders. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 20th of June. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
See our latest analysis for Parlo Berhad
Comparing Parlo Berhad's CEO Compensation With The Industry
At the time of writing, our data shows that Parlo Berhad has a market capitalization of RM12m, and reported total annual CEO compensation of RM455k for the year to December 2024. That's a modest increase of 5.7% on the prior year. In particular, the salary of RM378.0k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Malaysian Hospitality industry with market capitalizations under RM849m, the reported median total CEO compensation was RM422k. So it looks like Parlo Berhad compensates Lian Ti in line with the median for the industry.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | RM378k | RM299k | 83% |
| Other | RM77k | RM131k | 17% |
| Total Compensation | RM455k | RM430k | 100% |
Talking in terms of the industry, salary represented approximately 72% of total compensation out of all the companies we analyzed, while other remuneration made up 28% of the pie. Parlo Berhad is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.
Parlo Berhad's Growth
Parlo Berhad's earnings per share (EPS) grew 5.8% per year over the last three years. In the last year, its revenue is up 2.3%.
We're not particularly impressed by the revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Parlo Berhad Been A Good Investment?
The return of -78% over three years would not have pleased Parlo Berhad shareholders. So shareholders would probably want the company to be less generous with CEO compensation.
To Conclude...
Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 3 warning signs for Parlo Berhad that investors should look into moving forward.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.