Key Insights

• PropNex's Annual General Meeting to take place on 23rd of April

• Total pay for CEO Mohamed Ismail Gafoore includes S$898.2k salary

• Total compensation is similar to the industry average

• PropNex's total shareholder return over the past three years was 111% while its EPS grew by 19% over the past three years

It would be hard to discount the role that CEO Mohamed Ismail Gafoore has played in delivering the impressive results at PropNex Limited (SGX:OYY) recently. Shareholders will have this at the front of their minds in the upcoming AGM on 23rd of April. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

View our latest analysis for PropNex

Comparing PropNex Limited's CEO Compensation With The Industry

At the time of writing, our data shows that PropNex Limited has a market capitalization of S$681m, and reported total annual CEO compensation of S$1.1m for the year to December 2023. That's a fairly small increase of 5.1% over the previous year. In particular, the salary of S$898.2k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Singaporean Real Estate industry with market capitalizations ranging from S$273m to S$1.1b, the reported median CEO total compensation was S$1.1m. From this we gather that Mohamed Ismail Gafoore is paid around the median for CEOs in the industry. What's more, Mohamed Ismail Gafoore holds S$63m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. PropNex pays out 80% of remuneration in the form of a salary, significantly higher than the industry average. 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 PropNex Limited's Growth Numbers

PropNex Limited's earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is down 19%.

Shareholders would be glad to know that the company has improved itself over the last few years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..