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Does G. K. Goh Holdings Limited's (SGX:G41) CEO Pay Reflect Performance?

Simply Wall St

Goh Yew Lin became the CEO of G. K. Goh Holdings Limited (SGX:G41) in 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for G. K. Goh Holdings

How Does Goh Yew Lin's Compensation Compare With Similar Sized Companies?

According to our data, G. K. Goh Holdings Limited has a market capitalization of S$247m, and paid its CEO total annual compensation worth S$1.0m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$969k. We examined companies with market caps from S$141m to S$565m, and discovered that the median CEO total compensation of that group was S$1.0m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of G. K. Goh Holdings. Talking in terms of the sector, salary represented approximately 92% of total compensation out of all the companies we analysed, while other remuneration made up 7.9% of the pie. G. K. Goh Holdings does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

So Goh Yew Lin receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context. The graphic below shows how CEO compensation at G. K. Goh Holdings has changed from year to year.

SGX:G41 CEO Compensation April 13th 2020
SGX:G41 CEO Compensation April 13th 2020

Is G. K. Goh Holdings Limited Growing?

Over the last three years G. K. Goh Holdings Limited has shrunk its earnings per share by an average of 85% per year (measured with a line of best fit). In the last year, its revenue is up 29%.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has G. K. Goh Holdings Limited Been A Good Investment?

With a three year total loss of 5.9%, G. K. Goh Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Goh Yew Lin is close enough to the median pay for a CEO of a similar sized company .

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Looking into other areas, we've picked out 2 warning signs for G. K. Goh Holdings that investors should think about before committing capital to this stock.

Important note: G. K. Goh 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.