The Compensation For Zicom Group Limited's (ASX:ZGL) CEO Looks Deserved And Here's Why

Key Insights

• Zicom Group's Annual General Meeting to take place on 19th of November
• CEO Yew Sim Kok's total compensation includes salary of S$236.2k
• Total compensation is similar to the industry average
• Over the past three years, Zicom Group's EPS grew by 101% and over the past three years, the total shareholder return was 120%

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The performance at Zicom Group Limited (ASX:ZGL) has been quite strong recently and CEO Yew Sim Kok has played a role in it. Coming up to the next AGM on 19th of November, shareholders would be keeping this in mind. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for Zicom Group

Comparing Zicom Group Limited's CEO Compensation With The Industry

Our data indicates that Zicom Group Limited has a market capitalization of AU$31m, and total annual CEO compensation was reported as S$641k for the year to June 2025. This means that the compensation hasn't changed much from last year. We think total compensation is more important but our data shows that the CEO salary is lower, at S$236k.

In comparison with other companies in the Australian Machinery industry with market capitalizations under AU$306m, the reported median total CEO compensation was S$643k. From this we gather that Yew Sim Kok is paid around the median for CEOs in the industry. What's more, Yew Sim Kok holds AU$196k worth of shares in the company in their own name.

On an industry level, around 61% of total compensation represents salary and 39% is other remuneration. In Zicom Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Zicom Group Limited's Growth Numbers

Zicom Group Limited's earnings per share (EPS) grew 101% per year over the last three years. It achieved revenue growth of 10% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Zicom Group Limited Been A Good Investment?

Boasting a total shareholder return of 120% over three years, Zicom Group Limited has done well by shareholders. 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...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at 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 it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Zicom Group that investors should be aware of in a dynamic business environment.

Important note: Zicom 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.

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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.