Shareholders Will Probably Hold Off On Increasing Vibrant Group Limited's (SGX:BIP) CEO Compensation For The Time Being

Key Insights

• Vibrant Group's Annual General Meeting to take place on 29th of August
• CEO Eric Khua's total compensation includes salary of S$536.3k
• The overall pay is 577% above the industry average
• Vibrant Group's EPS declined by 5.5% over the past three years while total shareholder return over the past three years was 115%

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Despite strong share price growth of 115% for Vibrant Group Limited (SGX:BIP) over the last few years, earnings growth has been disappointing, which suggests something is amiss. These concerns will be at the front of shareholders' minds as they go into the AGM coming up on 29th of August. They will be able to influence managerial decisions through the exercise of their voting power on resolutions, such as CEO remuneration and other matters, which may influence future company prospects. From the data that we gathered, we think that shareholders should hold off on a raise on CEO compensation until performance starts to show some improvement.

View our latest analysis for Vibrant Group

Comparing Vibrant Group Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Vibrant Group Limited has a market capitalization of S$119m, and reported total annual CEO compensation of S$665k for the year to April 2025. That is, the compensation was roughly the same as last year. In particular, the salary of S$536.3k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Singapore Logistics industry with market capitalizations below S$258m, we found that the median total CEO compensation was S$98k. Accordingly, our analysis reveals that Vibrant Group Limited pays Eric Khua north of the industry median. Moreover, Eric Khua also holds S$6.8m worth of Vibrant Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 80% of total compensation represents salary, while the remainder of 20% is other remuneration. There isn't a significant difference between Vibrant Group and the broader market, in terms of salary allocation in the overall compensation package. 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.

A Look at Vibrant Group Limited's Growth Numbers

Over the last three years, Vibrant Group Limited has shrunk its earnings per share by 5.5% per year. Its revenue is up 7.9% over the last year.

Few shareholders would be pleased to read that EPS have declined. 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. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Vibrant Group Limited Been A Good Investment?

Boasting a total shareholder return of 115% over three years, Vibrant Group Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Although shareholders would be quite happy with the returns they have earned on their initial investment, earnings have failed to grow and this could mean returns may be hard to keep up. Shareholders should make the most of the coming opportunity to question the board on key concerns they may have and revisit their investment thesis with regards to the company.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Vibrant Group that you should be aware of before investing.

Important note: Vibrant Group 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.