Key Insights

• Grand Banks Yachts to hold its Annual General Meeting on 24th of October
• CEO Mark Jonathon Richards' total compensation includes salary of S$1.03m
• The total compensation is 228% higher than the average for the industry
• Grand Banks Yachts' EPS grew by 71% over the past three years while total shareholder return over the past three years was 105%

Under the guidance of CEO Mark Jonathon Richards, Grand Banks Yachts Limited (SGX:G50) 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 24th of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Comparing Grand Banks Yachts Limited's CEO Compensation With The Industry

According to our data, Grand Banks Yachts Limited has a market capitalization of S$103m, and paid its CEO total annual compensation worth S$1.8m over the year to June 2024. That's a notable increase of 14% on last year. We note that the salary of S$1.03m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Singaporean Machinery industry with market capitalizations under S$263m, the reported median total CEO compensation was S$551k. This suggests that Mark Jonathon Richards is paid more than the median for the industry. Furthermore, Mark Jonathon Richards directly owns S$6.8m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 81% of total compensation out of all the companies we analyzed, while other remuneration made up 19% of the pie. In Grand Banks Yachts' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Grand Banks Yachts Limited's Growth Numbers

Grand Banks Yachts Limited has seen its earnings per share (EPS) increase by 71% a year over the past three years. Its revenue is up 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. 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 Grand Banks Yachts Limited Been A Good Investment?

Most shareholders would probably be pleased with Grand Banks Yachts Limited for providing a total return of 105% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

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. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Grand Banks Yachts (1 is significant!) 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.