Here's Why Some Shareholders May Not Be Too Generous With Beshom Holdings Berhad's (KLSE:BESHOM) CEO Compensation This Year

Key Insights

• Beshom Holdings Berhad to hold its Annual General Meeting on 25th of September
• Total pay for CEO Keng Tan includes RM360.0k salary
• The overall pay is 48% below the industry average
• Over the past three years, Beshom Holdings Berhad's EPS fell by 33% and over the past three years, the total loss to shareholders 47%

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The underwhelming performance at Beshom Holdings Berhad (KLSE:BESHOM) recently has probably not pleased shareholders. The next AGM coming up on 25th of September will be a chance for shareholders to have their concerns addressed by the board, challenge management on company strategy and vote on resolutions such as executive remuneration, which may help change the company's future prospects. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

Check out our latest analysis for Beshom Holdings Berhad

How Does Total Compensation For Keng Tan Compare With Other Companies In The Industry?

Our data indicates that Beshom Holdings Berhad has a market capitalization of RM198m, and total annual CEO compensation was reported as RM497k for the year to April 2025. That is, the compensation was roughly the same as last year. In particular, the salary of RM360.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Malaysian Consumer Retailing industry with market capitalizations under RM839m, the reported median total CEO compensation was RM962k. In other words, Beshom Holdings Berhad pays its CEO lower than the industry median. Moreover, Keng Tan also holds RM13m worth of Beshom Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Although there is a difference in how total compensation is set, Beshom Holdings Berhad more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Beshom Holdings Berhad's Growth

Over the last three years, Beshom Holdings Berhad has shrunk its earnings per share by 33% per year. In the last year, its revenue is up 2.6%.

Few shareholders would be pleased to read that EPS have declined. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Beshom Holdings Berhad Been A Good Investment?

The return of -47% over three years would not have pleased Beshom Holdings Berhad shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

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 2 warning signs for Beshom Holdings 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.