The underwhelming share price performance of Frasers Property Limited (SGX:TQ5) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 18 January 2023. They could also influence management through voting on resolutions such as executive remuneration. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

View our latest analysis for Frasers Property

How Does Total Compensation For Panote Sirivadhanabhakdi Compare With Other Companies In 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$3.6m for the year to September 2022. Notably, that's an increase of 18% over the year before. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$956k.

On examining similar-sized companies in the Singaporean Real Estate industry with market capitalizations between S$2.7b and S$8.5b, we discovered that the median CEO total compensation of that group was S$795k. Accordingly, our analysis reveals that Frasers Property Limited pays Panote Sirivadhanabhakdi north of the industry median.

On an industry level, roughly 55% of total compensation represents salary and 45% is other remuneration. It's interesting to note that Frasers Property allocates a smaller portion of compensation to salary in comparison 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 Frasers Property Limited's Growth Numbers

Frasers Property Limited's earnings per share (EPS) grew 12% per year over the last three years. Its revenue is up 3.0% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 total shareholder return of -43% over three years, Frasers Property Limited shareholders would by and large be disappointed. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Despite the growth in its earnings, the share price decline in the past three years is certainly concerning. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. 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. We did our research and identified 3 warning signs (and 1 which is concerning) in Frasers Property we think you should know about.

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.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here