Increases to CEO Compensation Might Be Put On Hold For Now at First Resources Limited (SGX:EB5)

Key Insights

• First Resources to hold its Annual General Meeting on 28th of April
• Salary of US$625.1k is part of CEO Ciliandra Fangiono's total remuneration
• Total compensation is 461% above industry average
• First Resources' EPS grew by 16% over the past three years while total shareholder loss over the past three years was 16%

We've discovered 2 warning signs about First Resources. View them for free.

Shareholders of First Resources Limited (SGX:EB5) will have been dismayed by the negative share price return over the last three years. 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 28th of April could be an opportunity for shareholders to bring these concerns to the board's attention. They could also influence management through voting on resolutions such as executive remuneration. 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 First Resources

Comparing First Resources Limited's CEO Compensation With The Industry

According to our data, First Resources Limited has a market capitalization of S$2.3b, and paid its CEO total annual compensation worth US$1.1m over the year to December 2024. That's a notable decrease of 31% on last year. We note that the salary of US$625.1k makes up a sizeable portion of the total compensation received by the CEO.

On comparing similar companies from the Singaporean Food industry with market caps ranging from S$1.3b to S$4.2b, we found that the median CEO total compensation was US$192k. Hence, we can conclude that Ciliandra Fangiono is remunerated higher than the industry median.

Component	2024	2023	Proportion (2024)
Salary	US$625k	US$639k	58%
Other	US$453k	US$920k	42%
Total Compensation	US$1.1m	US$1.6m	100%

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. There isn't a significant difference between First Resources and the broader market, in terms of salary allocation in the overall compensation package. 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.

A Look at First Resources Limited's Growth Numbers

First Resources Limited has seen its earnings per share (EPS) increase by 16% a year over the past three years. It achieved revenue growth of 5.9% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Resources Limited Been A Good Investment?

With a three year total loss of 16% for the shareholders, First Resources Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which can't be ignored) in First Resources we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.