Yahoo Finance Shareholders May Be More Conservative With VICOM Ltd's (SGX:WJP) CEO Compensation For Now
Key Insights
VICOM will host its Annual General Meeting on 24th of April
Salary of S$375.6k is part of CEO Wing Yew Sim's total remuneration
The overall pay is 383% above the industry average
Over the past three years, VICOM's EPS grew by 4.1% and over the past three years, the total loss to shareholders 30%
The underwhelming share price performance of VICOM Ltd (SGX:WJP) in the past three years would have disappointed many shareholders. 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 24th 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.
View our latest analysis for VICOM
How Does Total Compensation For Wing Yew Sim Compare With Other Companies In The Industry?
Our data indicates that VICOM Ltd has a market capitalization of S$479m, and total annual CEO compensation was reported as S$776k for the year to December 2023. Notably, that's an increase of 8.9% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at S$376k.
On comparing similar companies from the Singapore Commercial Services industry with market caps ranging from S$273m to S$1.1b, we found that the median CEO total compensation was S$160k. This suggests that Wing Yew Sim is paid more than the median for the industry.
Component | 2023 | 2022 | Proportion (2023) |
Salary | S$376k | S$343k | 48% |
Other | S$400k | S$370k | 52% |
Total Compensation | S$776k | S$712k | 100% |
On an industry level, roughly 79% of total compensation represents salary and 21% is other remuneration. VICOM sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
VICOM Ltd's Growth
VICOM Ltd has seen its earnings per share (EPS) increase by 4.1% a year over the past three years. Its revenue is up 3.3% over the last year.
We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. 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 VICOM Ltd Been A Good Investment?
Since shareholders would have lost about 30% over three years, some VICOM Ltd investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. 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. 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.
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for VICOM you should be aware of, and 1 of them shouldn't be ignored.
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.
