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Increases to CEO Compensation Might Be Put On Hold For Now at ValueMax Group Limited (SGX:T6I)

Simply Wall St ·  Apr 17 18:08

Key Insights

  • ValueMax Group will host its Annual General Meeting on 24th of April
  • CEO Steven Yeah's total compensation includes salary of S$401.1k
  • The overall pay is 556% above the industry average
  • Over the past three years, ValueMax Group's EPS grew by 2.9% and over the past three years, the total shareholder return was 20%

CEO Steven Yeah has done a decent job of delivering relatively good performance at ValueMax Group Limited (SGX:T6I) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 24th of April. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Steven Yeah Compare With Other Companies In The Industry?

Our data indicates that ValueMax Group Limited has a market capitalization of S$307m, and total annual CEO compensation was reported as S$1.1m for the year to December 2023. Notably, that's an increase of 18% over the year before. We think total compensation is more important but our data shows that the CEO salary is lower, at S$401k.

For comparison, other companies in the Singapore Consumer Finance industry with market capitalizations ranging between S$136m and S$545m had a median total CEO compensation of S$175k. Hence, we can conclude that Steven Yeah is remunerated higher than the industry median.

Component20232022Proportion (2023)
Salary S$401k S$390k 35%
Other S$745k S$584k 65%
Total CompensationS$1.1m S$974k100%

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. ValueMax Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ceo-compensation
SGX:T6I CEO Compensation April 17th 2024

A Look at ValueMax Group Limited's Growth Numbers

ValueMax Group Limited's earnings per share (EPS) grew 2.9% per year over the last three years. Its revenue is up 15% over the last year.

We think the revenue growth is good. And the improvement in EPSis modest but respectable. So while performance isn't amazing, we think it really does seem quite respectable. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has ValueMax Group Limited Been A Good Investment?

ValueMax Group Limited has served shareholders reasonably well, with a total return of 20% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

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. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in ValueMax Group we think you should know about.

Switching gears from ValueMax Group, 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.

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