We Think Some Shareholders May Hesitate To Increase Grand Banks Yachts Limited's (SGX:G50) CEO Compensation

Key Insights

• Grand Banks Yachts to hold its Annual General Meeting on 24th of October
• Salary of S$1.03m is part of CEO Mark Jonathon Richards's total remuneration
• The overall pay is 228% above the industry average
• Grand Banks Yachts' EPS grew by 71% over the past three years while total shareholder return over the past three years was 105%

Under the guidance of CEO Mark Jonathon Richards, Grand Banks Yachts Limited (SGX:G50) 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 24th of October. However, some shareholders will still be cautious of paying the CEO excessively.

Check out our latest analysis for Grand Banks Yachts

How Does Total Compensation For Mark Jonathon Richards Compare With Other Companies In The Industry?

According to our data, Grand Banks Yachts Limited has a market capitalization of S$103m, and paid its CEO total annual compensation worth S$1.8m over the year to June 2024. We note that's an increase of 14% above last year. Notably, the salary which is S$1.03m, represents a considerable chunk of the total compensation being paid.

For comparison, other companies in the Singaporean Machinery industry with market capitalizations below S$263m, reported a median total CEO compensation of S$551k. Accordingly, our analysis reveals that Grand Banks Yachts Limited pays Mark Jonathon Richards north of the industry median. Furthermore, Mark Jonathon Richards directly owns S$6.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	S$1.0m	S$1.0m	57%
Other	S$783k	S$561k	43%
Total Compensation	S$1.8m	S$1.6m	100%

Speaking on an industry level, nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. Grand Banks Yachts pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Grand Banks Yachts Limited's Growth

Grand Banks Yachts Limited has seen its earnings per share (EPS) increase by 71% a year over the past three years. In the last year, its revenue is up 17%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's a real positive to see this sort of revenue growth in a single year. That suggests a healthy and growing business. 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 Grand Banks Yachts Limited Been A Good Investment?

We think that the total shareholder return of 105%, over three years, would leave most Grand Banks Yachts Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay 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.

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. That's why we did our research, and identified 3 warning signs for Grand Banks Yachts (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

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.