We Discuss Why Frasers Property Limited's (SGX:TQ5) CEO Compensation May Be Closely Reviewed

Key Insights

• Frasers Property's Annual General Meeting to take place on 24th of January

• Salary of S$996.0k is part of CEO Panote Sirivadhanabhakdi's total remuneration

• The overall pay is 230% above the industry average

• Over the past three years, Frasers Property's EPS fell by 6.2% and over the past three years, the total loss to shareholders 21%

The results at Frasers Property Limited (SGX:TQ5) have been quite disappointing recently and CEO Panote Sirivadhanabhakdi bears some responsibility for this. At the upcoming AGM on 24th of January, shareholders can hear from the board including their plans for turning around performance. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. From our analysis, we think CEO compensation may need a review in light of the recent performance.

See our latest analysis for Frasers Property

How Does Total Compensation For Panote Sirivadhanabhakdi Compare With Other Companies In The Industry?

At the time of writing, our data shows that Frasers Property Limited has a market capitalization of S$3.7b, and reported total annual CEO compensation of S$3.3m for the year to September 2023. That's a notable decrease of 9.8% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at S$996k.

In comparison with other companies in the Singaporean Real Estate industry with market capitalizations ranging from S$2.7b to S$8.6b, the reported median CEO total compensation was S$995k. This suggests that Panote Sirivadhanabhakdi is paid more than the median for the industry.

On an industry level, roughly 45% of total compensation represents salary and 55% is other remuneration. Frasers Property 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.

Frasers Property Limited's Growth

Over the last three years, Frasers Property Limited has shrunk its earnings per share by 6.2% per year. Its revenue is up 1.8% over the last year.

The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in 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?

Since shareholders would have lost about 21% over three years, some Frasers Property Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Given that shareholders haven't seen any positive returns on their investment, not to mention the lack of earnings growth, this may suggest that few of them would be willing to award the CEO with a pay rise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 4 warning signs for Frasers Property you should be aware of, and 1 of them is concerning.

Important note: Frasers Property 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.

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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.