It's Unlikely That VICOM Ltd's (SGX:WJP) CEO Will See A Huge Pay Rise This Year

Key Insights

• VICOM to hold its Annual General Meeting on 23rd of April
• Total pay for CEO Wing Yew Sim includes S$390.6k salary
• Total compensation is 394% above industry average
• Over the past three years, VICOM's EPS grew by 5.7% and over the past three years, the total loss to shareholders 28%

Our free stock report includes 1 warning sign investors should be aware of before investing in VICOM. Read for free now.

In the past three years, the share price of VICOM Ltd (SGX:WJP) has struggled to grow and now shareholders are sitting on a loss. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. The AGM coming up on the 23rd of April could be an opportunity for shareholders to bring these concerns to the board's attention. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

See our latest analysis for VICOM

Comparing VICOM Ltd's CEO Compensation With The Industry

According to our data, VICOM Ltd has a market capitalization of S$475m, and paid its CEO total annual compensation worth S$716k over the year to December 2024. We note that's a small decrease of 7.7% on last year. We note that the salary of S$390.6k makes up a sizeable portion of the total compensation received by the CEO.

On examining similar-sized companies in the Singapore Commercial Services industry with market capitalizations between S$263m and S$1.1b, we discovered that the median CEO total compensation of that group was S$145k. This suggests that Wing Yew Sim is paid more than the median for the industry.

On an industry level, roughly 92% of total compensation represents salary and 8% is other remuneration. In VICOM's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

VICOM Ltd's Growth

VICOM Ltd has seen its earnings per share (EPS) increase by 5.7% a year over the past three years. It achieved revenue growth of 6.8% over the last year.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has VICOM Ltd Been A Good Investment?

Given the total shareholder loss of 28% over three years, many shareholders in VICOM Ltd are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 VICOM that you should be aware of before investing.

Important note: VICOM 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.