We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Fraser and Neave, Limited's (SGX:F99) CEO For Now

Key Insights

• Fraser and Neave will host its Annual General Meeting on 16th of January
• Total pay for CEO Choon Kit Hui includes S$749.2k salary
• Total compensation is 257% above industry average
• Fraser and Neave's EPS grew by 2.3% over the past three years while total shareholder return over the past three years was 6.6%

Performance at Fraser and Neave, Limited (SGX:F99) has been reasonably good and CEO Choon Kit Hui has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 16th of January. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Fraser and Neave

How Does Total Compensation For Choon Kit Hui Compare With Other Companies In The Industry?

According to our data, Fraser and Neave, Limited has a market capitalization of S$2.0b, and paid its CEO total annual compensation worth S$905k over the year to September 2024. We note that's a decrease of 14% compared to last year. In particular, the salary of S$749.2k, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the Singaporean Food industry with market capitalizations between S$1.4b and S$4.4b, we discovered that the median CEO total compensation of that group was S$253k. This suggests that Choon Kit Hui is paid more than the median for the industry. Furthermore, Choon Kit Hui directly owns S$1.4m worth of shares in the company.

Component	2024	2023	Proportion (2024)
Salary	S$749k	S$725k	83%
Other	S$156k	S$329k	17%
Total Compensation	S$905k	S$1.1m	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. Fraser and Neave pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. 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.

Fraser and Neave, Limited's Growth

Fraser and Neave, Limited's earnings per share (EPS) grew 2.3% per year over the last three years. In the last year, its revenue is up 3.0%.

We're not particularly impressed by the revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Fraser and Neave, Limited Been A Good Investment?

Fraser and Neave, Limited has generated a total shareholder return of 6.6% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

To Conclude...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 Fraser and Neave we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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.