Shareholders Will Probably Hold Off On Increasing Sunmoon Food Company Limited's (SGX:AAJ) CEO Compensation For The Time Being

Key Insights

• Sunmoon Food will host its Annual General Meeting on 29th of July
• CEO Ye Zhang's total compensation includes salary of S$194.2k
• Total compensation is 51% above industry average
• Over the past three years, Sunmoon Food's EPS grew by 20% and over the past three years, the total loss to shareholders 42%

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The underwhelming share price performance of Sunmoon Food Company Limited (SGX:AAJ) in the past three years would have disappointed many shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. The AGM coming up on the 29th of July 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 discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Sunmoon Food

How Does Total Compensation For Ye Zhang Compare With Other Companies In The Industry?

According to our data, Sunmoon Food Company Limited has a market capitalization of S$16m, and paid its CEO total annual compensation worth S$194k over the year to March 2025. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth S$194k.

For comparison, other companies in the Singapore Consumer Retailing industry with market capitalizations below S$256m, reported a median total CEO compensation of S$128k. Hence, we can conclude that Ye Zhang is remunerated higher than the industry median. Furthermore, Ye Zhang directly owns S$130k worth of shares in the company.

Speaking on an industry level, nearly 72% of total compensation represents salary, while the remainder of 28% is other remuneration. Speaking on a company level, Sunmoon Food prefers to tread along a traditional path, disbursing all compensation through a salary. 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.

Sunmoon Food Company Limited's Growth

Over the past three years, Sunmoon Food Company Limited has seen its earnings per share (EPS) grow by 20% per year. Its revenue is up 25% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Sunmoon Food Company Limited Been A Good Investment?

The return of -42% over three years would not have pleased Sunmoon Food Company Limited shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Sunmoon Food rewards its CEO solely through a salary, ignoring non-salary benefits completely. Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Sunmoon Food you should be aware of, and 1 of them doesn't sit too well with us.

Switching gears from Sunmoon Food, 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.

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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.