Shareholders May Be More Conservative With Grand Banks Yachts Limited's (SGX:G50) CEO Compensation For Now

Simply Wall St ·  10/22/2022 06:30

Performance at Grand Banks Yachts Limited (SGX:G50) has been reasonably good and CEO Mark Jonathon Richards has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 27 October 2022, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still want to keep CEO compensation within reason.

View our latest analysis for Grand Banks Yachts

How Does Total Compensation For Mark Jonathon Richards Compare With Other Companies In The Industry?

At the time of writing, our data shows that Grand Banks Yachts Limited has a market capitalization of S$55m, and reported total annual CEO compensation of S$877k for the year to June 2022. We note that's a decrease of 25% compared to last year. Notably, the salary which is S$626.4k, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under S$284m, the reported median total CEO compensation was S$116k. Accordingly, our analysis reveals that Grand Banks Yachts Limited pays Mark Jonathon Richards north of the industry median. Furthermore, Mark Jonathon Richards directly owns S$3.3m worth of shares in the company, implying that they are deeply invested in the company's success.

Component20222021Proportion (2022)
Salary S$626k S$600k 71%
Other S$251k S$574k 29%
Total CompensationS$877k S$1.2m100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. Although there is a difference in how total compensation is set, Grand Banks Yachts more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensationSGX:G50 CEO Compensation October 21st 2022

Grand Banks Yachts Limited's Growth

Grand Banks Yachts Limited's earnings per share (EPS) grew 39% per year over the last three years. Its revenue is down 22% over the previous year.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Grand Banks Yachts Limited Been A Good Investment?

With a total shareholder return of 17% over three years, Grand Banks Yachts Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are 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. That's why we did our research, and identified 4 warning signs for Grand Banks Yachts (of which 3 are a bit unpleasant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.

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