Sheng Siong CEO Lim Hock Chee Sees Massive Pay Rise: A Closer Look at the Numbers!

SINGAPORE – In a surprising turn of events, Sheng Siong, one of the largest supermarket chains in Singapore, has revealed that CEO Lim Hock Chee's total compensation skyrocketed by 20.6% to $7.06 million for the 2024 financial year, up from $5.86 million in the previous year.

According to the company's annual report released on April 4, Mr. Lim's compensation package is quite diverse, consisting of a base salary of $373,000, a variable bonus of a whopping $6.66 million, director’s fees amounting to $20,000, and additional benefits valued at $16,000. This marks a noteworthy increase in his variable bonus compared to the $5.45 million he received last year.

Interestingly, Mr. Lim's brothers, who are also deeply involved in the company, received substantial paychecks as well. Executive Chairman Lim Hock Eng earned $7.01 million, while Managing Director Lim Hock Leng was compensated with $7 million in the same period.

However, the remuneration landscape isn't entirely rosy for all. The total compensation for 10 key management personnel, who are not directors or part of the company's executive leadership, fell to $6.1 million for FY2024, a significant decrease from $8 million the previous year – a clear signal that the company may be tightening its financial belt in response to market challenges.

In February, amid increasing expenses, Sheng Siong reported a slight decline in year-on-year net profit for the second half of the financial year, totaling $67.6 million. Despite these pressures, the company posted revenue of $714.5 million for the first half, reflecting a healthy year-on-year growth of 5.5%.

The supermarket chain declared a final dividend of 3.2 cents per share, consistent with the previous year, while the total dividend for the full year reached 6.4 cents, edging up from 6.25 cents in FY2023.

In his statement within the annual report, Mr. Lim expressed concerns about external economic factors such as geopolitical tensions and global trade disputes impacting consumer confidence and supply chain reliability. He emphasized the company’s commitment to enhancing its resilience through continued investments in automation, which aims to improve operational efficiency and profit margins.

Looking towards the future, Mr. Lim remains optimistic about Sheng Siong’s growth trajectory, pointing out that there are eight pending tender results that could contribute to expansion. He emphasized a cautious yet strategic approach to entering the Chinese market, highlighting the importance of closely monitoring market dynamics.

Despite the optimism in some quarters, Sheng Siong's shares witnessed a 3.6% drop to $1.59 at market close on April 7, mirroring a broader market downturn amid rising global tensions and tariff issues.

As the supermarket giant navigates through these challenges, the stakes remain high for both its leadership and shareholders. Will they manage to maintain their growth amid volatility? Only time will tell!