Under the guidance of CEO Boon Chye Loh, Singapore Exchange Limited (SGX:S68) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 06 October 2022. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Singapore Exchange

How Does Total Compensation For Boon Chye Loh Compare With Other Companies In The Industry?

At the time of writing, our data shows that Singapore Exchange Limited has a market capitalization of S$10b, and reported total annual CEO compensation of S$6.5m for the year to June 2022. Notably, that's an increase of 20% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at S$1.2m.

On examining similar-sized companies in the industry with market capitalizations between S$5.8b and S$17b, we discovered that the median CEO total compensation of that group was S$765k. This suggests that Boon Chye Loh is paid more than the median for the industry. Moreover, Boon Chye Loh also holds S$10m worth of Singapore Exchange stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 98% of total compensation out of all the companies we analyzed, while other remuneration made up 2% of the pie. Singapore Exchange pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Singapore Exchange Limited's Growth Numbers

Singapore Exchange Limited's earnings per share (EPS) grew 4.9% per year over the last three years. It achieved revenue growth of 4.1% over the last year.

We would argue that the improvement in revenue is good, but isn't particularly impressive, but we're happy with the modest EPS growth. Considering these factors we'd say performance has been pretty decent, though not amazing. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Singapore Exchange Limited Been A Good Investment?

With a total shareholder return of 23% over three years, Singapore Exchange Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

Whatever your view on compensation, you might want to check if insiders are buying or selling Singapore Exchange shares (free trial).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity 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.