Key Insights

• First Resources' Annual General Meeting to take place on 26th of April

• Total pay for CEO Ciliandra Fangiono includes US$639.1k salary

• The total compensation is 648% higher than the average for the industry

• First Resources' total shareholder return over the past three years was 8.4% while its EPS grew by 14% over the past three years

Under the guidance of CEO Ciliandra Fangiono, First Resources Limited (SGX:EB5) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 26th of April. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for First Resources

Comparing First Resources Limited's CEO Compensation With The Industry

At the time of writing, our data shows that First Resources Limited has a market capitalization of S$2.2b, and reported total annual CEO compensation of US$1.6m for the year to December 2023. That's a notable increase of 38% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at US$639k.

For comparison, other companies in the Singaporean Food industry with market capitalizations ranging between S$1.4b and S$4.4b had a median total CEO compensation of US$208k. Accordingly, our analysis reveals that First Resources Limited pays Ciliandra Fangiono north of the industry median.

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. It's interesting to note that First Resources allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at First Resources Limited's Growth Numbers

Over the past three years, First Resources Limited has seen its earnings per share (EPS) grow by 14% per year. In the last year, its revenue is down 20%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has First Resources Limited Been A Good Investment?

With a total shareholder return of 8.4% over three years, First Resources Limited has done okay by shareholders, but there's always room for improvement. Accordingly, a proposal to increase CEO remuneration without seeing an improvement in shareholder returns might not be met favorably by most shareholders.

To Conclude...

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. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being paid higher than the industry.

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 First Resources that you should be aware of before investing.

Important note: First Resources 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.