What Did Straco Corporation Limited's (SGX:S85) CEO Take Home Last Year?
Hsioh Wu is the CEO of Straco Corporation Limited (SGX:S85). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Straco
How Does Hsioh Wu's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Straco Corporation Limited has a market cap of S$648m, and is paying total annual CEO compensation of S$1.6m. (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$982k. When we examined a selection of companies with market caps ranging from S$277m to S$1.1b, we found the median CEO total compensation was S$82k.
It would therefore appear that Straco Corporation Limited pays Hsioh Wu 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Straco has changed from year to year.
Is Straco Corporation Limited Growing?
Over the last three years Straco Corporation Limited has shrunk its earnings per share by an average of 4.1% per year (measured with a line of best fit). In the last year, its revenue is up 3.3%.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Straco Corporation Limited Been A Good Investment?
Straco Corporation Limited has not done too badly by shareholders, with a total return of 7.0%, over three years. 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 Straco Corporation Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don't delight. So you may want to delve deeper, because we don't think the CEO pay is too low. So you may want to check if insiders are buying Straco shares with their own money (free access).
If you want to buy a stock that is better than Straco, this free list of high return, low debt companies is a great place to look.
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.
