Here's Why It's Unlikely That UMS Integration Limited's (SGX:558) CEO Will See A Pay Rise This Year

Key Insights

• UMS Integration to hold its Annual General Meeting on 24th of April
• Total pay for CEO Andy Luong includes S$1.02m salary
• Total compensation is 2,161% above industry average
• UMS Integration's three-year loss to shareholders was 4.4% while its EPS was down 10% over the past three years

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

The results at UMS Integration Limited (SGX:558) have been quite disappointing recently and CEO Andy Luong bears some responsibility for this. At the upcoming AGM on 24th of April, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

See our latest analysis for UMS Integration

How Does Total Compensation For Andy Luong Compare With Other Companies In The Industry?

Our data indicates that UMS Integration Limited has a market capitalization of S$718m, and total annual CEO compensation was reported as S$5.5m for the year to December 2024. Notably, that's a decrease of 38% over the year before. While we always look at total compensation first, our analysis shows that the salary component is less, at S$1.0m.

On examining similar-sized companies in the Singapore Semiconductor industry with market capitalizations between S$263m and S$1.1b, we discovered that the median CEO total compensation of that group was S$244k. Hence, we can conclude that Andy Luong is remunerated higher than the industry median. Furthermore, Andy Luong directly owns S$110m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 48% of total compensation represents salary and 52% is other remuneration. In UMS Integration's case, non-salary compensation represents a greater slice of total remuneration, in comparison 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.

A Look at UMS Integration Limited's Growth Numbers

Over the last three years, UMS Integration Limited has shrunk its earnings per share by 10% per year. In the last year, its revenue is down 19%.

Overall this is not a very positive result for shareholders. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has UMS Integration Limited Been A Good Investment?

With a three year total loss of 4.4% for the shareholders, UMS Integration Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

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, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for UMS Integration that investors should be aware of in a dynamic business environment.

Switching gears from UMS Integration, 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.

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.