Most Shareholders Will Probably Agree With Jardine Cycle & Carriage Limited's (SGX:C07) CEO Compensation

Key Insights

• Jardine Cycle & Carriage will host its Annual General Meeting on 29th of April
• Salary of US$581.2k is part of CEO Ben Birks's total remuneration
• The overall pay is comparable to the industry average
• Jardine Cycle & Carriage's total shareholder return over the past three years was 31% while its EPS grew by 31% over the past three years

CEO Ben Birks has done a decent job of delivering relatively good performance at Jardine Cycle & Carriage Limited (SGX:C07) 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 April. Here is our take on why we think the CEO compensation looks appropriate.

View our latest analysis for Jardine Cycle & Carriage

Comparing Jardine Cycle & Carriage Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Jardine Cycle & Carriage Limited has a market capitalization of S$11b, and reported total annual CEO compensation of US$3.2m for the year to December 2023. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$581k.

In comparison with other companies in the Singapore Industrials industry with market capitalizations ranging from S$5.5b to S$16b, the reported median CEO total compensation was US$3.2m. From this we gather that Ben Birks is paid around the median for CEOs in the industry. Furthermore, Ben Birks directly owns S$1.5m worth of shares in the company.

Component	2023	2022	Proportion (2023)
Salary	US$581k	US$544k	18%
Other	US$2.6m	US$2.6m	82%
Total Compensation	US$3.2m	US$3.2m	100%

On an industry level, around 57% of total compensation represents salary and 43% is other remuneration. In Jardine Cycle & Carriage'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.

A Look at Jardine Cycle & Carriage Limited's Growth Numbers

Jardine Cycle & Carriage Limited has seen its earnings per share (EPS) increase by 31% a year over the past three years. Its revenue is up 3.1% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Jardine Cycle & Carriage Limited Been A Good Investment?

Jardine Cycle & Carriage Limited has served shareholders reasonably well, with a total return of 31% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which can't be ignored) in Jardine Cycle & Carriage we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.