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Is CSE Global Limited's (SGX:544) CEO Paid Enough Relative To Peers?

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Boon Lim has been the CEO of CSE Global Limited (SGX:544) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for CSE Global

How Does Boon Lim's Compensation Compare With Similar Sized Companies?

According to our data, CSE Global Limited has a market capitalization of S$249m, and pays its CEO total annual compensation worth S$2.1m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at S$644k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$135m to S$541m. The median total CEO compensation was S$656k.

It would therefore appear that CSE Global Limited pays Boon Lim more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

You can see, below, how CEO compensation at CSE Global has changed over time.

SGX:544 CEO Compensation, June 25th 2019
SGX:544 CEO Compensation, June 25th 2019

Is CSE Global Limited Growing?

Over the last three years CSE Global Limited has shrunk its earnings per share by an average of 56% per year (measured with a line of best fit). In the last year, its revenue is down -2.6%.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.

Has CSE Global Limited Been A Good Investment?

CSE Global Limited has generated a total shareholder return of 28% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount CSE Global Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

And shareholder returns are decent but not great. So we doubt many shareholders would consider the CEO pay to be particularly modest! Whatever your view on compensation, you might want to check if insiders are buying or selling CSE Global shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.

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