How Much Is Bioalpha Holdings Berhad's (KLSE:BIOHLDG) CEO Getting Paid?

The CEO of Bioalpha Holdings Berhad (KLSE:BIOHLDG) is William Hon, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Bioalpha Holdings Berhad.

View our latest analysis for Bioalpha Holdings Berhad

Comparing Bioalpha Holdings Berhad's CEO Compensation With the industry

Our data indicates that Bioalpha Holdings Berhad has a market capitalization of RM332m, and total annual CEO compensation was reported as RM409k for the year to December 2019. That is, the compensation was roughly the same as last year. Notably, the salary of RM409k is the entirety of the CEO compensation.

On comparing similar-sized companies in the industry with market capitalizations below RM813m, we found that the median total CEO compensation was RM325k. So it looks like Bioalpha Holdings Berhad compensates William Hon in line with the median for the industry. What's more, William Hon holds RM29m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 90% of total compensation represents salary and 10.0% is other remuneration. At the company level, Bioalpha Holdings Berhad pays William Hon solely through a salary, preferring to go down a conventional route. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Bioalpha Holdings Berhad's Growth Numbers

Over the last three years, Bioalpha Holdings Berhad has shrunk its earnings per share by 65% per year. In the last year, its revenue is down 36%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Bioalpha Holdings Berhad Been A Good Investment?

With a total shareholder return of 27% over three years, Bioalpha Holdings Berhad shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Bioalpha Holdings Berhad rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we touched on above, Bioalpha Holdings Berhad is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Bioalpha Holdings Berhad has had a tough time in recent years, with declining EPS growth, and although shareholder returns are stable, they are hardly worth celebrating. This doesn't compare well with CEO compensation, which is close to the industry median. Considering all of this, we can't say the CEO is underpaid, and moving forward shareholders will likely want to see higher growth to justify any raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 3 warning signs for Bioalpha Holdings Berhad that investors should be aware of in a dynamic business environment.

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. 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.
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