In This Article:
Key Insights
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Metro Holdings will host its Annual General Meeting on 26th of July
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CEO Hoong Mun Yip's total compensation includes salary of S$1.33m
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The overall pay is 786% above the industry average
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Over the past three years, Metro Holdings' EPS fell by 27% and over the past three years, the total loss to shareholders 31%
Shareholders will probably not be too impressed with the underwhelming results at Metro Holdings Limited (SGX:M01) recently. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 26th of July. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
See our latest analysis for Metro Holdings
Comparing Metro Holdings Limited's CEO Compensation With The Industry
Our data indicates that Metro Holdings Limited has a market capitalization of S$406m, and total annual CEO compensation was reported as S$2.4m for the year to March 2024. This means that the compensation hasn't changed much from last year. Notably, the salary which is S$1.33m, represents a considerable chunk of the total compensation being paid.
In comparison with other companies in the Singapore Multiline Retail industry with market capitalizations ranging from S$269m to S$1.1b, the reported median CEO total compensation was S$272k. Hence, we can conclude that Hoong Mun Yip is remunerated higher than the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | S$1.3m | S$1.4m | 55% |
| Other | S$1.1m | S$1.0m | 45% |
| Total Compensation | S$2.4m | S$2.4m | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. In Metro Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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 Metro Holdings Limited's Growth Numbers
Metro Holdings Limited has reduced its earnings per share by 27% a year over the last three years. Its revenue is down 1.1% over the previous year.
Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.