We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Riverstone Holdings Limited's (SGX:AP4) CEO For Now

Key Insights

• Riverstone Holdings' Annual General Meeting to take place on 21st of April
• CEO Teek Son Wong's total compensation includes salary of RM586.3k
• The overall pay is 250% above the industry average
• Riverstone Holdings' EPS declined by 41% over the past three years while total shareholder return over the past three years was 37%

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Performance at Riverstone Holdings Limited (SGX:AP4) has been reasonably good and CEO Teek Son Wong 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 21st of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

See our latest analysis for Riverstone Holdings

Comparing Riverstone Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Riverstone Holdings Limited has a market capitalization of S$1.3b, and reported total annual CEO compensation of RM2.7m for the year to December 2024. We note that's an increase of 16% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at RM586k.

In comparison with other companies in the Singapore Medical Equipment industry with market capitalizations ranging from S$526m to S$2.1b, the reported median CEO total compensation was RM772k. Hence, we can conclude that Teek Son Wong is remunerated higher than the industry median. What's more, Teek Son Wong holds S$670m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2024	2023	Proportion (2024)
Salary	RM586k	RM627k	22%
Other	RM2.1m	RM1.7m	78%
Total Compensation	RM2.7m	RM2.3m	100%

Speaking on an industry level, nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Riverstone Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Riverstone Holdings Limited's Growth

Over the last three years, Riverstone Holdings Limited has shrunk its earnings per share by 41% per year. It achieved revenue growth of 17% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Riverstone Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Riverstone Holdings Limited for providing a total return of 37% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

The overall company performance has been commendable, however there are still areas for improvement. EPS growth is still weak, and until that picks up, shareholders may find it hard to approve a pay rise for the CEO, since they are already paid above the average in their industry.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Riverstone Holdings that investors should think about before committing capital to this stock.

Important note: Riverstone Holdings 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.