Performance at UWC Berhad (KLSE:UWC) has been reasonably good and CEO Chai Ng has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 09 January 2023. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for UWC Berhad
How Does Total Compensation For Chai Ng Compare With Other Companies In The Industry?
Our data indicates that UWC Berhad has a market capitalization of RM4.4b, and total annual CEO compensation was reported as RM1.9m for the year to July 2022. That's a fairly small increase of 7.1% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM914k.
In comparison with other companies in the Malaysian Machinery industry with market capitalizations ranging from RM1.8b to RM7.0b, the reported median CEO total compensation was RM511k. Hence, we can conclude that Chai Ng is remunerated higher than the industry median. Moreover, Chai Ng also holds RM334m worth of UWC Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2022 | 2021 | Proportion (2022) |
| Salary | RM914k | RM804k | 49% |
| Other | RM952k | RM939k | 51% |
| Total Compensation | RM1.9m | RM1.7m | 100% |
On an industry level, roughly 78% of total compensation represents salary and 22% is other remuneration. In UWC Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at UWC Berhad's Growth Numbers
Over the past three years, UWC Berhad has seen its earnings per share (EPS) grow by 36% per year. Its revenue is up 27% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing 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 UWC Berhad Been A Good Investment?
We think that the total shareholder return of 296%, over three years, would leave most UWC Berhad shareholders smiling. 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.