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We Think Singapore Land Group Limited's (SGX:U06) CEO Compensation Package Needs To Be Put Under A Microscope
Key Insights
- Singapore Land Group to hold its Annual General Meeting on 29th of April
- CEO Jonathan Eu's total compensation includes salary of S$581.0k
- The overall pay is 197% above the industry average
- Singapore Land Group's EPS declined by 5.0% over the past three years while total shareholder loss over the past three years was 18%
The results at Singapore Land Group Limited (SGX:U06) have been quite disappointing recently and CEO Jonathan Eu bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 29th of April. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for Singapore Land Group
How Does Total Compensation For Jonathan Eu Compare With Other Companies In The Industry?
Our data indicates that Singapore Land Group Limited has a market capitalization of S$2.8b, and total annual CEO compensation was reported as S$1.4m for the year to December 2024. We note that's an increase of 13% above last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$581k.
In comparison with other companies in the Singaporean Real Estate industry with market capitalizations ranging from S$1.3b to S$4.2b, the reported median CEO total compensation was S$455k. Hence, we can conclude that Jonathan Eu is remunerated higher than the industry median.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | S$581k | S$551k | 43% |
| Other | S$770k | S$647k | 57% |
| Total Compensation | S$1.4m | S$1.2m | 100% |
On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. Singapore Land Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.
A Look at Singapore Land Group Limited's Growth Numbers
Over the last three years, Singapore Land Group Limited has shrunk its earnings per share by 5.0% per year. It achieved revenue growth of 9.1% over the last year.
Overall this is not a very positive result for shareholders. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Singapore Land Group Limited Been A Good Investment?
Given the total shareholder loss of 18% over three years, many shareholders in Singapore Land Group Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 2 warning signs for Singapore Land Group (of which 1 is potentially serious!) that you should know about in order to have a holistic understanding of the stock.
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.
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.