Yahoo Finance We Take A Look At Why PropNex Limited's (SGX:OYY) CEO Has Earned Their Pay Packet
Key Insights
PropNex's Annual General Meeting to take place on 23rd of April
Total pay for CEO Mohamed Ismail Gafoore includes S$898.2k salary
Total compensation is similar to the industry average
PropNex's total shareholder return over the past three years was 111% while its EPS grew by 19% over the past three years
It would be hard to discount the role that CEO Mohamed Ismail Gafoore has played in delivering the impressive results at PropNex Limited (SGX:OYY) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 23rd of April. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.
View our latest analysis for PropNex
Comparing PropNex Limited's CEO Compensation With The Industry
At the time of writing, our data shows that PropNex Limited has a market capitalization of S$681m, and reported total annual CEO compensation of S$1.1m for the year to December 2023. That's a fairly small increase of 5.1% over the previous year. In particular, the salary of S$898.2k, makes up a huge portion of the total compensation being paid to the CEO.
In comparison with other companies in the Singaporean Real Estate industry with market capitalizations ranging from S$273m to S$1.1b, the reported median CEO total compensation was S$1.1m. From this we gather that Mohamed Ismail Gafoore is paid around the median for CEOs in the industry. What's more, Mohamed Ismail Gafoore holds S$63m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.
Component | 2023 | 2022 | Proportion (2023) |
Salary | S$898k | S$843k | 80% |
Other | S$231k | S$232k | 20% |
Total Compensation | S$1.1m | S$1.1m | 100% |
On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. PropNex pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. 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.
A Look at PropNex Limited's Growth Numbers
PropNex Limited's earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is down 19%.
Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has PropNex Limited Been A Good Investment?
Most shareholders would probably be pleased with PropNex Limited for providing a total return of 111% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
The company's solid performance might have made most shareholders happy, possibly making CEO remuneration the least of the matters to be discussed in the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.
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 PropNex that investors should think about before committing capital to this stock.
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.
