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華爾街日報Should Shareholders Reconsider KESM Industries Berhad's (KLSE:KESM) CEO Compensation Package?
Key Insights
- KESM Industries Berhad will host its Annual General Meeting on 14th of January
- CEO Samuel Lim's total compensation includes salary of RM720.0k
- Total compensation is similar to the industry average
- Over the past three years, KESM Industries Berhad's EPS fell by 5.1% and over the past three years, the total loss to shareholders 53%
Shareholders will probably not be too impressed with the underwhelming results at KESM Industries Berhad (KLSE:KESM) recently. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 14th of January. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. The data we present below explains why we think CEO compensation is not consistent with recent performance.
View our latest analysis for KESM Industries Berhad
Comparing KESM Industries Berhad's CEO Compensation With The Industry
At the time of writing, our data shows that KESM Industries Berhad has a market capitalization of RM130m, and reported total annual CEO compensation of RM894k for the year to July 2025. That's a fairly small increase of 3.8% over the previous year. Notably, the salary which is RM720.0k, represents most of the total compensation being paid.
For comparison, other companies in the Malaysian Semiconductor industry with market capitalizations below RM811m, reported a median total CEO compensation of RM813k. This suggests that KESM Industries Berhad remunerates its CEO largely in line with the industry average.
| Component | 2025 | 2024 | Proportion (2025) |
| Salary | RM720k | RM692k | 81% |
| Other | RM174k | RM169k | 19% |
| Total Compensation | RM894k | RM861k | 100% |
Speaking on an industry level, nearly 82% of total compensation represents salary, while the remainder of 18% is other remuneration. Our data reveals that KESM Industries Berhad allocates salary more or less in line with the wider market. 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 KESM Industries Berhad's Growth Numbers
Over the last three years, KESM Industries Berhad has shrunk its earnings per share by 5.1% per year. In the last year, its revenue is down 9.6%.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 KESM Industries Berhad Been A Good Investment?
With a total shareholder return of -53% over three years, KESM Industries Berhad shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in KESM Industries Berhad we think you should know about.
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.