It's Unlikely That Singapore Land Group Limited's (SGX:U06) CEO Will See A Huge Pay Rise This Year

editorial-team@simplywallst.com (Simply Wall St)

Sat, Apr 20, 2024, 6:32 PM 4 min read

Singapore Land Group will host its Annual General Meeting on 26th of April
Salary of S$551.4k is part of CEO Jonathan Eu's total remuneration
The overall pay is 90% above the industry average
Over the past three years, Singapore Land Group's EPS grew by 44% and over the past three years, the total loss to shareholders 33%

Shareholders of Singapore Land Group Limited (SGX:U06) will have been dismayed by the negative share price return over the last three years. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 26th of April. They could also influence management through voting on resolutions such as executive remuneration. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Singapore Land Group

Comparing Singapore Land Group Limited's CEO Compensation With The Industry

According to our data, Singapore Land Group Limited has a market capitalization of S$2.6b, and paid its CEO total annual compensation worth S$1.2m over the year to December 2023. That's mostly flat as compared to the prior year's compensation. While we always look at total compensation first, our analysis shows that the salary component is less, at S$551k.

On examining similar-sized companies in the Singaporean Real Estate industry with market capitalizations between S$1.4b and S$4.4b, we discovered that the median CEO total compensation of that group was S$631k. This suggests that Jonathan Eu is paid more than the median for the industry.

Component	2023	2022	Proportion (2023)
Salary	S$551k	S$524k	46%
Other	S$647k	S$668k	54%
Total Compensation	S$1.2m	S$1.2m	100%

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. It's interesting to note that Singapore Land Group allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

ceo-compensation — SGX:U06 CEO Compensation April 21st 2024

Singapore Land Group Limited's Growth

Over the past three years, Singapore Land Group Limited has seen its earnings per share (EPS) grow by 44% per year. In the last year, its revenue changed by just 0.8%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Singapore Land Group Limited Been A Good Investment?

Few Singapore Land Group Limited shareholders would feel satisfied with the return of -33% over three years. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. At the upcoming AGM, shareholders will get the opportunity to discuss any issues with the board, including those related to CEO remuneration and assess if the board's plan will likely improve performance in the future.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 3 warning signs for Singapore Land Group (1 is a bit unpleasant!) that you should be aware of before investing here.

Important note: Singapore Land Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.