We Think Shareholders Are Less Likely To Approve A Large Pay Rise For UOL Group Limited's (SGX:U14) CEO For Now

Key Insights

• UOL Group will host its Annual General Meeting on 28th of April
• Salary of S$895.0k is part of CEO Wee Sin Liam's total remuneration
• The total compensation is 247% higher than the average for the industry
• UOL Group's three-year loss to shareholders was 13% while its EPS grew by 5.2% over the past three years

We've discovered 1 warning sign about UOL Group. View them for free.

As many shareholders of UOL Group Limited (SGX:U14) will be aware, they have not made a gain on their investment in the past three years. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from 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. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for UOL Group

Comparing UOL Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that UOL Group Limited has a market capitalization of S$4.8b, and reported total annual CEO compensation of S$2.9m for the year to December 2024. That is, the compensation was roughly the same as last year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$895k.

In comparison with other companies in the Singaporean Real Estate industry with market capitalizations ranging from S$2.6b to S$8.3b, the reported median CEO total compensation was S$832k. Accordingly, our analysis reveals that UOL Group Limited pays Wee Sin Liam north of the industry median. What's more, Wee Sin Liam holds S$2.8m 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	S$895k	S$906k	31%
Other	S$2.0m	S$2.0m	69%
Total Compensation	S$2.9m	S$2.9m	100%

On an industry level, around 62% of total compensation represents salary and 38% is other remuneration. In UOL Group's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

UOL Group Limited's Growth

UOL Group Limited has seen its earnings per share (EPS) increase by 5.2% a year over the past three years. In the last year, its revenue is up 4.2%.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has UOL Group Limited Been A Good Investment?

With a three year total loss of 13% for the shareholders, UOL Group 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. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. If there are some unknown variables that are influencing the stock's price, surely shareholders would have some concerns. 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.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We did our research and spotted 1 warning sign for UOL Group that investors should look into moving forward.

Switching gears from UOL 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.