It's Unlikely That United Overseas Bank Limited's (SGX:U11) CEO Will See A Huge Pay Rise This Year

Key Insights

• United Overseas Bank will host its Annual General Meeting on 21st of April
• Total pay for CEO Ee Cheong Wee includes S$1.44m salary
• The overall pay is 3,555% above the industry average
• Over the past three years, United Overseas Bank's EPS grew by 14% and over the past three years, the total shareholder return was 27%

We've discovered 1 warning sign about United Overseas Bank. View them for free.

Under the guidance of CEO Ee Cheong Wee, United Overseas Bank Limited (SGX:U11) has performed reasonably well 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 21st of April. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for United Overseas Bank

Comparing United Overseas Bank Limited's CEO Compensation With The Industry

According to our data, United Overseas Bank Limited has a market capitalization of S$55b, and paid its CEO total annual compensation worth S$15m over the year to December 2024. We note that's a small decrease of 5.5% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$1.4m.

In comparison with other companies in the Singapore Banks industry with market capitalizations over S$11b, the reported median total CEO compensation was S$412k. Accordingly, our analysis reveals that United Overseas Bank Limited pays Ee Cheong Wee north of the industry median. What's more, Ee Cheong Wee holds S$1.7b worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. In United Overseas Bank's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

United Overseas Bank Limited's Growth

United Overseas Bank Limited's earnings per share (EPS) grew 14% per year over the last three years. In the last year, its revenue is up 2.7%.

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. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has United Overseas Bank Limited Been A Good Investment?

With a total shareholder return of 27% over three years, United Overseas Bank Limited shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this 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, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 1 warning sign for United Overseas Bank that you should be aware of before investing.

Important note: United Overseas Bank 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.