It Looks Like Sarine Technologies Ltd.'s (SGX:U77) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• Sarine Technologies' Annual General Meeting to take place on 24th of April
• CEO David Block's total compensation includes salary of US$346.0k
• The overall pay is comparable to the industry average
• Sarine Technologies' EPS declined by 59% over the past three years while total shareholder loss over the past three years was 49%

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Sarine Technologies Ltd. (SGX:U77) has not performed well recently and CEO David Block will probably need to up their game. At the upcoming AGM on 24th of April, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

View our latest analysis for Sarine Technologies

How Does Total Compensation For David Block Compare With Other Companies In The Industry?

According to our data, Sarine Technologies Ltd. has a market capitalization of S$73m, and paid its CEO total annual compensation worth US$407k over the year to December 2024. That is, the compensation was roughly the same as last year. In particular, the salary of US$346.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Singaporean Machinery industry with market capitalizations under S$263m, the reported median total CEO compensation was US$407k. From this we gather that David Block is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 69% of total compensation represents salary, while the remainder of 31% is other remuneration. According to our research, Sarine Technologies has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Sarine Technologies Ltd.'s Growth

Over the last three years, Sarine Technologies Ltd. has shrunk its earnings per share by 59% per year. In the last year, its revenue is down 8.7%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Sarine Technologies Ltd. Been A Good Investment?

With a total shareholder return of -49% over three years, Sarine Technologies Ltd. shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

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, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Sarine Technologies that investors should think about before committing capital to this stock.

Switching gears from Sarine Technologies, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.