Shareholders May Be Wary Of Increasing GP Industries Limited's (SGX:G20) CEO Compensation Package

Key Insights

• GP Industries to hold its Annual General Meeting on 29th of July
• CEO Victor Lo's total compensation includes salary of S$1.09m
• The total compensation is 433% higher than the average for the industry
• Over the past three years, GP Industries' EPS fell by 18% and over the past three years, the total loss to shareholders 9.6%

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The results at GP Industries Limited (SGX:G20) have been quite disappointing recently and CEO Victor Lo bears some responsibility for this. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 29th of July. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

Check out our latest analysis for GP Industries

Comparing GP Industries Limited's CEO Compensation With The Industry

At the time of writing, our data shows that GP Industries Limited has a market capitalization of S$238m, and reported total annual CEO compensation of S$1.2m for the year to March 2025. This means that the compensation hasn't changed much from last year. In particular, the salary of S$1.09m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Singapore Electrical industry with market capitalizations ranging from S$128m to S$511m, the reported median CEO total compensation was S$223k. This suggests that Victor Lo is paid more than the median for the industry. Furthermore, Victor Lo directly owns S$149k worth of shares in the company.

On an industry level, around 83% of total compensation represents salary and 17% is other remuneration. GP Industries pays out 92% of remuneration in the form of a salary, significantly higher than the industry average. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at GP Industries Limited's Growth Numbers

Over the last three years, GP Industries Limited has shrunk its earnings per share by 18% per year. Revenue was pretty flat on last year.

Few shareholders would be pleased to read that EPS have declined. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 GP Industries Limited Been A Good Investment?

Since shareholders would have lost about 9.6% over three years, some GP Industries Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which don't sit too well with us) in GP Industries we think you should know about.

Important note: GP Industries 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.