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Shareholders May Not Be So Generous With mDR Limited's (SGX:Y3D) CEO Compensation And Here's Why

Key Insights

  • mDR will host its Annual General Meeting on 29th of April

  • CEO Frankie Ong's total compensation includes salary of S$685.6k

  • Total compensation is 98% above industry average

  • Over the past three years, mDR's EPS fell by 37% and over the past three years, the total loss to shareholders 26%

Shareholders of mDR Limited (SGX:Y3D) will have been dismayed by the negative share price return over the last three years. Per share earnings growth is also lacking, despite revenue growth. Shareholders will have a chance to take their concerns to the board at the next AGM on 29th of April and vote on resolutions including executive compensation, which studies show may have an impact on company performance. We think shareholders may be cautious of approving a pay rise for the CEO at the moment, based on our analysis below.

Check out our latest analysis for mDR

Comparing mDR Limited's CEO Compensation With The Industry

Our data indicates that mDR Limited has a market capitalization of S$45m, and total annual CEO compensation was reported as S$1m for the year to December 2023. We note that's a decrease of 11% compared to last year. In particular, the salary of S$685.6k, makes up a huge portion of the total compensation being paid to the CEO.

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On comparing similar-sized companies in the Singapore Electronic industry with market capitalizations below S$273m, we found that the median total CEO compensation was S$505k. Hence, we can conclude that Frankie Ong is remunerated higher than the industry median. What's more, Frankie Ong holds S$3.1m 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$686k

S$685k

69%

Other

S$314k

S$438k

31%

Total Compensation

S$1m

S$1.1m

100%

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. mDR is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
ceo-compensation

mDR Limited's Growth

mDR Limited has reduced its earnings per share by 37% a year over the last three years. It achieved revenue growth of 23% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has mDR Limited Been A Good Investment?

Given the total shareholder loss of 26% over three years, many shareholders in mDR Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. The upcoming AGM will provide shareholders the opportunity to revisit the company’s remuneration policies and evaluate if the board’s judgement and decision-making is aligned with that of the company’s shareholders.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for mDR (1 is concerning!) that you should be aware of before investing here.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.