We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Oversea-Chinese Banking Corporation Limited's (SGX:O39) CEO For Now

Key Insights

• Oversea-Chinese Banking will host its Annual General Meeting on 17th of April
• CEO Helen Wong's total compensation includes salary of S$1.20m
• The overall pay is 2,461% above the industry average
• Oversea-Chinese Banking's EPS grew by 16% over the past three years while total shareholder return over the past three years was 52%

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Performance at Oversea-Chinese Banking Corporation Limited (SGX:O39) has been reasonably good and CEO Helen Wong has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 17th of April. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Oversea-Chinese Banking

How Does Total Compensation For Helen Wong Compare With Other Companies In The Industry?

According to our data, Oversea-Chinese Banking Corporation Limited has a market capitalization of S$69b, and paid its CEO total annual compensation worth S$13m over the year to December 2024. That's a modest increase of 5.8% on the prior year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$1.2m.

In comparison with other companies in the Singapore Banks industry with market capitalizations over S$11b, the reported median total CEO compensation was S$500k. This suggests that Helen Wong is paid more than the median for the industry. Moreover, Helen Wong also holds S$9.5m worth of Oversea-Chinese Banking stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. It's interesting to note that Oversea-Chinese Banking allocates a smaller portion of compensation to salary 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.

Oversea-Chinese Banking Corporation Limited's Growth

Over the past three years, Oversea-Chinese Banking Corporation Limited has seen its earnings per share (EPS) grow by 16% per year. It achieved revenue growth of 7.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Oversea-Chinese Banking Corporation Limited Been A Good Investment?

Boasting a total shareholder return of 52% over three years, Oversea-Chinese Banking Corporation 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.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for Oversea-Chinese Banking that investors should look into moving forward.

Important note: Oversea-Chinese Banking 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.