Increases to CEO Compensation Might Be Put On Hold For Now at Singapore Telecommunications Limited (SGX:Z74)
Key Insights
Singapore Telecommunications to hold its Annual General Meeting on 30th of July
Total pay for CEO Kuan Moon Yuen includes S$1.34m salary
The total compensation is 316% higher than the average for the industry
Singapore Telecommunications' EPS grew by 12% over the past three years while total shareholder return over the past three years was 55%
CEO Kuan Moon Yuen has done a decent job of delivering relatively good performance at Singapore Telecommunications Limited (SGX:Z74) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of July. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
Check out our latest analysis for Singapore Telecommunications
Comparing Singapore Telecommunications Limited's CEO Compensation With The Industry
At the time of writing, our data shows that Singapore Telecommunications Limited has a market capitalization of S$50b, and reported total annual CEO compensation of S$3.3m for the year to March 2024. This means that the compensation hasn't changed much from last year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$1.3m.
In comparison with other companies in the Singapore Telecom industry with market capitalizations over S$11b, the reported median total CEO compensation was S$790k. Accordingly, our analysis reveals that Singapore Telecommunications Limited pays Kuan Moon Yuen north of the industry median. What's more, Kuan Moon Yuen holds S$8.4m 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$1.3m | S$1.3m | 41% |
Other | S$1.9m | S$2.1m | 59% |
Total Compensation | S$3.3m | S$3.4m | 100% |
On an industry level, roughly 57% of total compensation represents salary and 43% is other remuneration. In Singapore Telecommunications' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.
A Look at Singapore Telecommunications Limited's Growth Numbers
Singapore Telecommunications Limited's earnings per share (EPS) grew 12% per year over the last three years. In the last year, its revenue is down 3.4%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Singapore Telecommunications Limited Been A Good Investment?
Boasting a total shareholder return of 55% over three years, Singapore Telecommunications Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 3 warning signs for Singapore Telecommunications (1 doesn't sit too well with us!) that you should be aware of before investing here.
Switching gears from Singapore Telecommunications, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com