Key Insights

• Frasers Property to hold its Annual General Meeting on 24th of January
• Salary of S$996.0k is part of CEO Panote Sirivadhanabhakdi's total remuneration
• The total compensation is 230% higher than the average for the industry
• Frasers Property's EPS declined by 6.2% over the past three years while total shareholder loss over the past three years was 21%

Frasers Property Limited (SGX:TQ5) has not performed well recently and CEO Panote Sirivadhanabhakdi will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 24th of January. 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. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Frasers Property

Comparing Frasers Property Limited's CEO Compensation With The Industry

Our data indicates that Frasers Property Limited has a market capitalization of S$3.7b, and total annual CEO compensation was reported as S$3.3m for the year to September 2023. Notably, that's a decrease of 9.8% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at S$996k.

On comparing similar companies from the Singaporean Real Estate industry with market caps ranging from S$2.7b to S$8.6b, we found that the median CEO total compensation was S$995k. Accordingly, our analysis reveals that Frasers Property Limited pays Panote Sirivadhanabhakdi north of the industry median.

On an industry level, around 45% of total compensation represents salary and 55% is other remuneration. Frasers Property sets aside a smaller share of compensation for salary, in comparison to the overall industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Frasers Property Limited's Growth

Over the last three years, Frasers Property Limited has shrunk its earnings per share by 6.2% per year. It achieved revenue growth of 1.8% over the last year.

The decline in EPS is a bit concerning. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. 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 Frasers Property Limited Been A Good Investment?

With a three year total loss of 21% for the shareholders, Frasers Property Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for Frasers Property you should be aware of, and 1 of them doesn't sit too well with us.

Switching gears from Frasers Property, 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.