Shareholders May Find It Hard To Justify Increasing Top Glove Corporation Bhd.'s (KLSE:TOPGLOV) CEO Compensation For Now

Key Insights

• Top Glove Corporation Bhd's Annual General Meeting to take place on 8th of January
• CEO John Lim's total compensation includes salary of RM749.0k
• Total compensation is similar to the industry average
• Top Glove Corporation Bhd's EPS grew by 75% over the past three years while total shareholder loss over the past three years was 29%

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Shareholders of Top Glove Corporation Bhd. (KLSE:TOPGLOV) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 8th of January. They could also influence management through voting on resolutions such as executive remuneration. 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 Top Glove Corporation Bhd

Comparing Top Glove Corporation Bhd.'s CEO Compensation With The Industry

At the time of writing, our data shows that Top Glove Corporation Bhd. has a market capitalization of RM5.2b, and reported total annual CEO compensation of RM1.1m for the year to August 2025. Notably, that's an increase of 20% over the year before. We note that the salary portion, which stands at RM749.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Malaysia Medical Equipment industry with market caps ranging from RM4.1b to RM13b, we found that the median CEO total compensation was RM915k. So it looks like Top Glove Corporation Bhd compensates John Lim in line with the median for the industry. Moreover, John Lim also holds RM334k worth of Top Glove Corporation Bhd stock directly under their own name.

Component	2025	2024	Proportion (2025)
Salary	RM749k	RM686k	70%
Other	RM326k	RM209k	30%
Total Compensation	RM1.1m	RM895k	100%

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Top Glove Corporation Bhd is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Top Glove Corporation Bhd.'s Growth Numbers

Top Glove Corporation Bhd.'s earnings per share (EPS) grew 75% per year over the last three years. In the last year, its revenue is up 20%.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Top Glove Corporation Bhd. Been A Good Investment?

With a three year total loss of 29% for the shareholders, Top Glove Corporation Bhd. would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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. That's why we did some digging and identified 1 warning sign for Top Glove Corporation Bhd that investors should think about before committing capital to this stock.

Important note: Top Glove Corporation Bhd 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.