Shareholders Will Probably Hold Off On Increasing Bioalpha Holdings Berhad's (KLSE:BIOHLDG) CEO Compensation For The Time Being
Key Insights
- Bioalpha Holdings Berhad's Annual General Meeting to take place on 3rd of June
- CEO William Hon's total compensation includes salary of RM360.0k
- The overall pay is comparable to the industry average
- Over the past three years, Bioalpha Holdings Berhad's EPS fell by 33% and over the past three years, the total loss to shareholders 83%
In the past three years, the share price of Bioalpha Holdings Berhad (KLSE:BIOHLDG) has struggled to grow and now shareholders are sitting on a loss. Per share earnings growth is also poor, despite revenues growing. In light of this performance, shareholders will have a chance to question the board in the upcoming AGM on 3rd of June, where they can impact on future company performance by voting on resolutions, including executive compensation. Here's our take on why we think shareholders might be hesitant about approving a raise at the moment.
Check out our latest analysis for Bioalpha Holdings Berhad
How Does Total Compensation For William Hon Compare With Other Companies In The Industry?
Our data indicates that Bioalpha Holdings Berhad has a market capitalization of RM35m, and total annual CEO compensation was reported as RM539k for the year to December 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is RM360.0k, represents most of the total compensation being paid.
On comparing similar-sized companies in the Malaysia Personal Products industry with market capitalizations below RM848m, we found that the median total CEO compensation was RM425k. So it looks like Bioalpha Holdings Berhad compensates William Hon in line with the median for the industry. Furthermore, William Hon directly owns RM1.2m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | RM360k | RM360k | 67% |
| Other | RM179k | RM181k | 33% |
| Total Compensation | RM539k | RM541k | 100% |
On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. In Bioalpha Holdings Berhad's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Bioalpha Holdings Berhad's Growth Numbers
Over the last three years, Bioalpha Holdings Berhad has shrunk its earnings per share by 33% per year. Its revenue is up 35% over the last year.
The reduction in EPS, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bioalpha Holdings Berhad Been A Good Investment?
Few Bioalpha Holdings Berhad shareholders would feel satisfied with the return of -83% over three years. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.
CEO compensation can have a massive impact on performance, but it's just one element. 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. 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.