Key Insights

• First Resources will host its Annual General Meeting on 28th of April
• Salary of US$625.1k is part of CEO Ciliandra Fangiono's total remuneration
• The overall pay is 461% above the industry average
• First Resources' three-year loss to shareholders was 16% while its EPS grew by 16% 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.

In the past three years, the share price of First Resources Limited (SGX:EB5) has struggled to grow and now shareholders are sitting on a loss. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 28th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Comparing First Resources Limited's CEO Compensation With The Industry

At the time of writing, our data shows that First Resources Limited has a market capitalization of S$2.3b, and reported total annual CEO compensation of US$1.1m for the year to December 2024. We note that's a decrease of 31% compared to last year. In particular, the salary of US$625.1k, makes up a fairly large portion of the total compensation being paid to the CEO.

For comparison, other companies in the Singaporean Food industry with market capitalizations ranging between S$1.3b and S$4.2b had a median total CEO compensation of US$192k. This suggests that Ciliandra Fangiono is paid more than the median for the industry.

Talking in terms of the industry, salary represented approximately 53% of total compensation out of all the companies we analyzed, while other remuneration made up 47% of the pie. Our data reveals that First Resources allocates salary more or less in line with the wider market. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

First Resources Limited's Growth

Over the past three years, First Resources Limited has seen its earnings per share (EPS) grow by 16% per year. It achieved revenue growth of 5.9% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Resources Limited Been A Good Investment?

Since shareholders would have lost about 16% over three years, some First Resources Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. 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.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for First Resources you should be aware of, and 1 of them shouldn't be ignored.

Important note: First Resources 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.

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.