Key Insights

• Singapore Airlines will host its Annual General Meeting on 29th of July
• CEO Choon Phong Goh's total compensation includes salary of S$1.44m
• Total compensation is similar to the industry average
• Singapore Airlines' EPS grew by 124% over the past three years while total shareholder return over the past three years was 54%

The performance at Singapore Airlines Limited (SGX:C6L) has been quite strong recently and CEO Choon Phong Goh has played a role in it. The pleasing results would be something shareholders would keep in mind at the upcoming AGM on 29th of July. This would also be a chance for them to hear the board review the financial results, discuss future company strategy and vote on any resolutions such as executive remuneration. Here is our take on why we think CEO compensation is not extravagant.

Comparing Singapore Airlines Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Singapore Airlines Limited has a market capitalization of S$25b, and reported total annual CEO compensation of S$8.1m for the year to March 2024. That's a notable increase of 21% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at S$1.4m.

On comparing similar companies in the Singapore Airlines industry with market capitalizations above S$11b, we found that the median total CEO compensation was S$10m. This suggests that Singapore Airlines remunerates its CEO largely in line with the industry average. Furthermore, Choon Phong Goh directly owns S$30m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 44% of total compensation represents salary and 56% is other remuneration. Singapore Airlines pays a modest slice of remuneration through salary, as compared to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

Singapore Airlines Limited's Growth

Singapore Airlines Limited has seen its earnings per share (EPS) increase by 124% a year over the past three years. Its revenue is up 7.0% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Singapore Airlines Limited Been A Good Investment?

Boasting a total shareholder return of 54% over three years, Singapore Airlines Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. However, investors will get the chance to engage on key strategic initiatives and future growth opportunities for the company and set their longer-term expectations.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 2 warning signs for Singapore Airlines you should be aware of, and 1 of them is potentially serious.

Important note: Singapore Airlines 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com