Yahoo Finance We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Kingsmen Creatives Ltd.'s (SGX:5MZ) CEO For Now
Key Insights
Kingsmen Creatives to hold its Annual General Meeting on 30th of April
Total pay for CEO Andrew Cheng includes S$323.8k salary
The total compensation is 347% higher than the average for the industry
Kingsmen Creatives' three-year loss to shareholders was 10% while its EPS grew by 114% over the past three years
In the past three years, the share price of Kingsmen Creatives Ltd. (SGX:5MZ) has struggled to generate growth for its shareholders. However, what is unusual is that EPS growth has been positive, suggesting that the share price has diverged from fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.
View our latest analysis for Kingsmen Creatives
How Does Total Compensation For Andrew Cheng Compare With Other Companies In The Industry?
Our data indicates that Kingsmen Creatives Ltd. has a market capitalization of S$55m, and total annual CEO compensation was reported as S$489k for the year to December 2023. That's slightly lower by 4.9% over the previous year. Notably, the salary which is S$323.8k, represents most of the total compensation being paid.
In comparison with other companies in the Singapore Professional Services industry with market capitalizations under S$273m, the reported median total CEO compensation was S$110k. Accordingly, our analysis reveals that Kingsmen Creatives Ltd. pays Andrew Cheng north of the industry median. Furthermore, Andrew Cheng directly owns S$450k worth of shares in the company.
Component | 2023 | 2022 | Proportion (2023) |
Salary | S$324k | S$370k | 66% |
Other | S$165k | S$144k | 34% |
Total Compensation | S$489k | S$514k | 100% |
On an industry level, roughly 93% of total compensation represents salary and 7% is other remuneration. Kingsmen Creatives sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Kingsmen Creatives Ltd.'s Growth Numbers
Kingsmen Creatives Ltd. has seen its earnings per share (EPS) increase by 114% a year over the past three years. In the last year, its revenue is up 10%.
Shareholders would be glad to know that the company has improved itself over the last few years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Kingsmen Creatives Ltd. Been A Good Investment?
With a three year total loss of 10% for the shareholders, Kingsmen Creatives Ltd. would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would probably be keen to find out what are the other factors could be weighing down the stock. The upcoming AGM will be a chance for shareholders 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 4 warning signs for Kingsmen Creatives that investors should look into moving forward.
Switching gears from Kingsmen Creatives, 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.
