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Hock Lim is the CEO of Sheng Siong Group Ltd (SGX:OV8). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Hock Lim's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Sheng Siong Group Ltd has a market cap of S$1.6b, and is paying total annual CEO compensation of S$3.2m. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at S$363k. We examined companies with market caps from S$543m to S$2.2b, and discovered that the median CEO total compensation of that group was S$250k.
It would therefore appear that Sheng Siong Group Ltd pays Hock 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 a visual representation of the CEO compensation at Sheng Siong Group, below.
Is Sheng Siong Group Ltd Growing?
Over the last three years Sheng Siong Group Ltd has grown its earnings per share (EPS) by an average of 7.7% per year (using a line of best fit). In the last year, its revenue is up 7.4%.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. You might want to check this free visual report on analyst forecasts for future earnings.
Has Sheng Siong Group Ltd Been A Good Investment?
Boasting a total shareholder return of 38% over three years, Sheng Siong Group Ltd has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at Sheng Siong Group Ltd with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. So, considering these tasty returns, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Sheng Siong Group (free visualization of insider trades).
Important note: Sheng Siong Group 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.
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 firstname.lastname@example.org. 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.