Shareholders May Be More Conservative With Sheng Siong Group Ltd's (SGX:OV8) CEO Compensation For Now
Key Insights
- Sheng Siong Group will host its Annual General Meeting on 29th of April
- CEO Hock Chee Lim's total compensation includes salary of S$373.0k
- Total compensation is 2,845% above industry average
- Over the past three years, Sheng Siong Group's EPS grew by 1.2% and over the past three years, the total shareholder return was 29%
Under the guidance of CEO Hock Chee Lim, Sheng Siong Group Ltd (SGX:OV8) 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 29th of April. However, some shareholders may still want to keep CEO compensation within reason.
See our latest analysis for Sheng Siong Group
Comparing Sheng Siong Group Ltd's CEO Compensation With The Industry
At the time of writing, our data shows that Sheng Siong Group Ltd has a market capitalization of S$2.6b, and reported total annual CEO compensation of S$7.1m for the year to December 2024. Notably, that's an increase of 21% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at S$373k.
In comparison with other companies in the Singapore Consumer Retailing industry with market capitalizations ranging from S$1.3b to S$4.2b, the reported median CEO total compensation was S$240k. Accordingly, our analysis reveals that Sheng Siong Group Ltd pays Hock Chee Lim north of the industry median. Furthermore, Hock Chee Lim directly owns S$208m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | S$373k | S$374k | 5% |
| Other | S$6.7m | S$5.5m | 95% |
| Total Compensation | S$7.1m | S$5.9m | 100% |
On an industry level, around 69% of total compensation represents salary and 31% is other remuneration. In Sheng Siong Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Sheng Siong Group Ltd's Growth Numbers
Sheng Siong Group Ltd's earnings per share (EPS) grew 1.2% per year over the last three years. It achieved revenue growth of 4.5% over the last year.
We'd prefer higher revenue growth, but it is good to see modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..
Has Sheng Siong Group Ltd Been A Good Investment?
Sheng Siong Group Ltd has generated a total shareholder return of 29% over three years, so most shareholders would be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
To Conclude...
The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Sheng Siong Group that investors should be aware of in a dynamic business environment.
Switching gears from Sheng Siong Group, 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.