We Think Some Shareholders May Hesitate To Increase United Overseas Australia Ltd's (ASX:UOS) CEO Compensation

Key Insights

• United Overseas Australia will host its Annual General Meeting on 29th of May
• CEO Chi Suim Kong's total compensation includes salary of AU$679.4k
• Total compensation is 77% above industry average
• Over the past three years, United Overseas Australia's EPS grew by 1.0% and over the past three years, the total shareholder return was 12%

We've discovered 2 warning signs about United Overseas Australia. View them for free.

CEO Chi Suim Kong has done a decent job of delivering relatively good performance at United Overseas Australia Ltd (ASX:UOS) 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 29th of May. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for United Overseas Australia

How Does Total Compensation For Chi Suim Kong Compare With Other Companies In The Industry?

At the time of writing, our data shows that United Overseas Australia Ltd has a market capitalization of AU$967m, and reported total annual CEO compensation of AU$1.2m for the year to December 2024. We note that's a small decrease of 4.2% on last year. Notably, the salary which is AU$679.4k, represents a considerable chunk of the total compensation being paid.

In comparison with other companies in the Australian Real Estate industry with market capitalizations ranging from AU$624m to AU$2.5b, the reported median CEO total compensation was AU$688k. Accordingly, our analysis reveals that United Overseas Australia Ltd pays Chi Suim Kong north of the industry median. Furthermore, Chi Suim Kong directly owns AU$135m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	AU$679k	AU$642k	56%
Other	AU$541k	AU$631k	44%
Total Compensation	AU$1.2m	AU$1.3m	100%

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. In United Overseas Australia's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

United Overseas Australia Ltd's Growth

United Overseas Australia Ltd has seen its earnings per share (EPS) increase by 1.0% a year over the past three years. Its revenue is up 31% over the last year.

It's great to see that revenue growth is strong. And in that context, the modest EPS improvement certainly isn't shabby. We wouldn't say this is necessarily top notch growth, but it is certainly promising. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has United Overseas Australia Ltd Been A Good Investment?

With a total shareholder return of 12% over three years, United Overseas Australia Ltd shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

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 pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for United Overseas Australia (1 is a bit unpleasant!) that you should be aware of before investing here.

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.