Should Shareholders Reconsider CapitaLand Investment Limited's (SGX:9CI) CEO Compensation Package?

Key Insights

• CapitaLand Investment to hold its Annual General Meeting on 29th of April
• CEO Chee Koon Lee's total compensation includes salary of S$1.13m
• Total compensation is 236% above industry average
• Over the past three years, CapitaLand Investment's EPS fell by 37% and over the past three years, the total loss to shareholders 26%

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Shareholders will probably not be too impressed with the underwhelming results at CapitaLand Investment Limited (SGX:9CI) recently. At the upcoming AGM on 29th of April, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. From our analysis, we think CEO compensation may need a review in light of the recent performance.

Check out our latest analysis for CapitaLand Investment

Comparing CapitaLand Investment Limited's CEO Compensation With The Industry

Our data indicates that CapitaLand Investment Limited has a market capitalization of S$13b, and total annual CEO compensation was reported as S$5.4m for the year to December 2024. That's just a smallish increase of 4.3% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$1.1m.

For comparison, other companies in the Singaporean Real Estate industry with market capitalizations above S$10b, reported a median total CEO compensation of S$1.6m. Hence, we can conclude that Chee Koon Lee is remunerated higher than the industry median. Furthermore, Chee Koon Lee directly owns S$14m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. CapitaLand Investment pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

CapitaLand Investment Limited's Growth

Over the last three years, CapitaLand Investment Limited has shrunk its earnings per share by 37% per year. Its revenue is up 1.1% over the last year.

The decline in EPS is a bit concerning. The fairly low revenue growth fails to impress given that the EPS is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has CapitaLand Investment Limited Been A Good Investment?

Since shareholders would have lost about 26% over three years, some CapitaLand Investment Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for CapitaLand Investment that investors should look into moving forward.

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.

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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.