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Is Combine Will International Holdings Limited's (SGX:N0Z) CEO Overpaid Relative To Its Peers?

Simply Wall St

Dominic Tam is the CEO of Combine Will International Holdings Limited (SGX:N0Z). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Combine Will International Holdings

How Does Dominic Tam's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Combine Will International Holdings Limited has a market cap of S$35m, and reported total annual CEO compensation of HK$326k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$326k. We took a group of companies with market capitalizations below S$269m, and calculated the median CEO total compensation to be S$465k.

So Dominic Tam is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at Combine Will International Holdings has changed from year to year.

SGX:N0Z CEO Compensation, January 15th 2020

Is Combine Will International Holdings Limited Growing?

Combine Will International Holdings Limited has increased its earnings per share (EPS) by an average of 92% a year, over the last three years (using a line of best fit). Its revenue is up 26% over last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Combine Will International Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 94% over three years, Combine Will International Holdings Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Dominic Tam is paid around what is normal the leaders of comparable size companies.

The company is growing earnings per share and total shareholder returns have been pleasing. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. So you may want to check if insiders are buying Combine Will International Holdings shares with their own money (free access).

Important note: Combine Will International Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.