We Think Shareholders Are Less Likely To Approve A Large Pay Rise For SATS Ltd.'s (SGX:S58) CEO For Now

Key Insights

• SATS' Annual General Meeting to take place on 25th of July
• Salary of S$1.02m is part of CEO Kerry Mok's total remuneration
• Total compensation is 1,395% above industry average
• Over the past three years, SATS' EPS grew by 109% and over the past three years, the total loss to shareholders 13%

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In the past three years, shareholders of SATS Ltd. (SGX:S58) have seen a loss on their investment. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25th of July. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

View our latest analysis for SATS

Comparing SATS Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that SATS Ltd. has a market capitalization of S$4.9b, and reported total annual CEO compensation of S$3.2m for the year to March 2025. This was the same amount the CEO received in the prior year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$1.0m.

In comparison with other companies in the Singapore Infrastructure industry with market capitalizations ranging from S$2.6b to S$8.2b, the reported median CEO total compensation was S$212k. Accordingly, our analysis reveals that SATS Ltd. pays Kerry Mok north of the industry median. What's more, Kerry Mok holds S$3.9m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that SATS allocates a smaller portion of compensation to salary 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 SATS Ltd.'s Growth Numbers

Over the past three years, SATS Ltd. has seen its earnings per share (EPS) grow by 109% per year. Its revenue is up 13% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has SATS Ltd. Been A Good Investment?

Given the total shareholder loss of 13% over three years, many shareholders in SATS Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be less generous with CEO compensation.

In Summary...

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. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

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 SATS that investors should be aware of in a dynamic business environment.

Switching gears from SATS, 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.