Key Insights

• UMS Holdings' Annual General Meeting to take place on 25th of April
• Total pay for CEO Andy Luong includes S$968.9k salary
• The overall pay is 3,562% above the industry average
• UMS Holdings' total shareholder return over the past three years was 38% while its EPS grew by 16% over the past three years

Under the guidance of CEO Andy Luong, UMS Holdings Limited (SGX:558) has performed reasonably well recently. As shareholders go into the upcoming AGM on 25th of April, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

How Does Total Compensation For Andy Luong Compare With Other Companies In The Industry?

At the time of writing, our data shows that UMS Holdings Limited has a market capitalization of S$924m, and reported total annual CEO compensation of S$8.9m for the year to December 2023. That's a notable increase of 22% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$969k.

For comparison, other companies in the Singapore Semiconductor industry with market capitalizations ranging between S$544m and S$2.2b had a median total CEO compensation of S$244k. Hence, we can conclude that Andy Luong is remunerated higher than the industry median. What's more, Andy Luong holds S$97m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 68% of total compensation represents salary and 32% is other remuneration. It's interesting to note that UMS Holdings 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.

UMS Holdings Limited's Growth

Over the past three years, UMS Holdings Limited has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 UMS Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 38% over three years, UMS Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

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, 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.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for UMS Holdings that investors should be aware of in a dynamic business environment.

Switching gears from UMS Holdings, 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.

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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.