Key Insights

• UOB-Kay Hian Holdings will host its Annual General Meeting on 25th of April
• CEO Ee-Chao Wee's total compensation includes salary of S$486.2k
• The overall pay is 996% above the industry average
• UOB-Kay Hian Holdings' EPS declined by 0.5% over the past three years while total shareholder loss over the past three years was 7.4%

In the past three years, the share price of UOB-Kay Hian Holdings Limited (SGX:U10) has struggled to generate growth for its shareholders. Per share earnings growth is also poor, despite revenues growing. The AGM coming up on 25th of April will be an opportunity for shareholders to have their concerns addressed by the board and for them to exercise their influence on management through voting on resolutions such as executive remuneration. Here's why we think shareholders should hold off on a raise for the CEO at the moment.

Comparing UOB-Kay Hian Holdings Limited's CEO Compensation With The Industry

At the time of writing, our data shows that UOB-Kay Hian Holdings Limited has a market capitalization of S$1.2b, and reported total annual CEO compensation of S$6.6m for the year to December 2023. We note that's an increase of 55% above last year. We think total compensation is more important but our data shows that the CEO salary is lower, at S$486k.

For comparison, other companies in the Singapore Capital Markets industry with market capitalizations ranging between S$545m and S$2.2b had a median total CEO compensation of S$599k. Hence, we can conclude that Ee-Chao Wee is remunerated higher than the industry median. Moreover, Ee-Chao Wee also holds S$260m worth of UOB-Kay Hian Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Talking in terms of the industry, salary represented approximately 94% of total compensation out of all the companies we analyzed, while other remuneration made up 6% of the pie. It's interesting to note that UOB-Kay Hian 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.

A Look at UOB-Kay Hian Holdings Limited's Growth Numbers

UOB-Kay Hian Holdings Limited saw earnings per share stay pretty flat over the last three years. Its revenue is up 18% over the last year.

The reduction in EPS, over three years, is arguably concerning. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has UOB-Kay Hian Holdings Limited Been A Good Investment?

Given the total shareholder loss of 7.4% over three years, many shareholders in UOB-Kay Hian Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

The returns to shareholders is disappointing along with lack of earnings growth, which goes some way in explaining the poor returns. Shareholders will get the chance at the upcoming AGM 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 compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. That's why we did some digging and identified 2 warning signs for UOB-Kay Hian Holdings that investors should think about before committing capital to this stock.

Switching gears from UOB-Kay Hian 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.