Increases to Padini Holdings Berhad's (KLSE:PADINI) CEO Compensation Might Cool off for now

Key Insights

• Padini Holdings Berhad to hold its Annual General Meeting on 27th of November
• CEO Pang Yong's total compensation includes salary of RM1.69m
• The overall pay is 31% above the industry average
• Padini Holdings Berhad's three-year loss to shareholders was 7.5% while its EPS grew by 0.1% over the past three years

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In the past three years, shareholders of Padini Holdings Berhad (KLSE:PADINI) have seen a loss on their investment. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 27th of November. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

View our latest analysis for Padini Holdings Berhad

Comparing Padini Holdings Berhad's CEO Compensation With The Industry

According to our data, Padini Holdings Berhad has a market capitalization of RM1.8b, and paid its CEO total annual compensation worth RM1.8m over the year to June 2025. We note that's a decrease of 21% compared to last year. Notably, the salary which is RM1.69m, represents most of the total compensation being paid.

In comparison with other companies in the Malaysian Specialty Retail industry with market capitalizations ranging from RM831m to RM3.3b, the reported median CEO total compensation was RM1.4m. This suggests that Pang Yong is paid more than the median for the industry. Moreover, Pang Yong also holds RM820m worth of Padini Holdings Berhad stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. There isn't a significant difference between Padini Holdings Berhad and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Padini Holdings Berhad's Growth

Over the last three years, Padini Holdings Berhad has not seen its earnings per share change much, though there is a slight positive movement. Revenue was pretty flat on last year.

We'd prefer higher revenue growth, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 Padini Holdings Berhad Been A Good Investment?

Given the total shareholder loss of 7.5% over three years, many shareholders in Padini Holdings Berhad are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

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 Padini Holdings Berhad that you should be aware of before investing.

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.