Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Sembcorp Industries Ltd's (SGX:U96) CEO For Now
Key Insights
Sembcorp Industries to hold its Annual General Meeting on 23rd of April
Salary of S$1.37m is part of CEO Kim Yin Wong's total remuneration
The overall pay is 396% above the industry average
Sembcorp Industries' total shareholder return over the past three years was 155% while its EPS grew by 94% over the past three years
CEO Kim Yin Wong has done a decent job of delivering relatively good performance at Sembcorp Industries Ltd (SGX:U96) recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of April. However, some shareholders will still be cautious of paying the CEO excessively.
View our latest analysis for Sembcorp Industries
Comparing Sembcorp Industries Ltd's CEO Compensation With The Industry
Our data indicates that Sembcorp Industries Ltd has a market capitalization of S$9.3b, and total annual CEO compensation was reported as S$7.9m for the year to December 2023. That's a notable increase of 34% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$1.4m.
In comparison with other companies in the Singapore Integrated Utilities industry with market capitalizations ranging from S$5.5b to S$16b, the reported median CEO total compensation was S$1.6m. Accordingly, our analysis reveals that Sembcorp Industries Ltd pays Kim Yin Wong north of the industry median. What's more, Kim Yin Wong holds S$26m 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$1.4m | S$1.4m | 17% |
Other | S$6.5m | S$4.5m | 83% |
Total Compensation | S$7.9m | S$5.9m | 100% |
Talking in terms of the industry, salary represented approximately 19% of total compensation out of all the companies we analyzed, while other remuneration made up 81% of the pie. There isn't a significant difference between Sembcorp Industries and the broader market, in terms of salary allocation in the overall compensation package. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
Sembcorp Industries Ltd's Growth
Sembcorp Industries Ltd's earnings per share (EPS) grew 94% per year over the last three years. In the last year, its revenue is down 10%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sembcorp Industries Ltd Been A Good Investment?
We think that the total shareholder return of 155%, over three years, would leave most Sembcorp Industries Ltd shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
To Conclude...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.
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. In our study, we found 3 warning signs for Sembcorp Industries you should be aware of, and 1 of them doesn't sit too well with us.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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.
