Ee Lim Wee has been the CEO of Haw Par Corporation Limited (SGX:H02) since 2003. 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. 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.
How Does Ee Lim Wee's Compensation Compare With Similar Sized Companies?
Our data indicates that Haw Par Corporation Limited is worth S$2.9b, and total annual CEO compensation was reported as S$2.1m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at S$999k. When we examined a selection of companies with market caps ranging from S$1.4b to S$4.4b, we found the median CEO total compensation was S$2.0m.
So Ee Lim Wee receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Haw Par, below.
Is Haw Par Corporation Limited Growing?
Haw Par Corporation Limited has increased its earnings per share (EPS) by an average of 17% a year, over the last three years (using a line of best fit). It achieved revenue growth of 14% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Haw Par Corporation Limited Been A Good Investment?
Boasting a total shareholder return of 66% over three years, Haw Par Corporation Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Ee Lim Wee is paid around what is normal the leaders of comparable size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Shareholders may want to check for free if Haw Par insiders are buying or selling shares.
Important note: Haw Par 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.
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