Key Insights

• Vibrant Group will host its Annual General Meeting on 30th of August
• CEO Eric Khua's total compensation includes salary of S$516.0k
• The overall pay is 376% above the industry average
• Vibrant Group's EPS declined by 42% over the past three years while total shareholder loss over the past three years was 37%

The results at Vibrant Group Limited (SGX:BIP) have been quite disappointing recently and CEO Eric Khua bears some responsibility for this. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 30th of August. This will be also be a chance where they can challenge the board on company direction and vote on resolutions such as executive remuneration. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Eric Khua Compare With Other Companies In The Industry?

According to our data, Vibrant Group Limited has a market capitalization of S$38m, and paid its CEO total annual compensation worth S$657k over the year to April 2024. That's slightly lower by 3.7% over the previous year. Notably, the salary which is S$516.0k, represents most of the total compensation being paid.

On comparing similar-sized companies in the Singapore Logistics industry with market capitalizations below S$262m, we found that the median total CEO compensation was S$138k. Hence, we can conclude that Eric Khua is remunerated higher than the industry median. Moreover, Eric Khua also holds S$2.2m worth of Vibrant Group stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 73% of total compensation represents salary and 27% is other remuneration. Our data reveals that Vibrant Group allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Vibrant Group Limited's Growth Numbers

Vibrant Group Limited has reduced its earnings per share by 42% a year over the last three years. It saw its revenue drop 18% over the last year.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Vibrant Group Limited Been A Good Investment?

With a total shareholder return of -37% over three years, Vibrant Group Limited shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 5 warning signs for Vibrant Group (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.