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Does Singapore Exchange Limited's (SGX:S68) CEO Pay Reflect Performance?

Simply Wall St

Boon Chye Loh has been the CEO of Singapore Exchange Limited (SGX:S68) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Singapore Exchange

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

Our data indicates that Singapore Exchange Limited is worth S$9.4b, and total annual CEO compensation was reported as S$4.3m for the year to June 2019. We think total compensation is more important but we note that the CEO salary is lower, at S$1.2m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$5.4b to S$16b. The median total CEO compensation was S$5.5m.

That means Boon Chye Loh receives fairly typical remuneration for the CEO of a company that size. 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.

You can see, below, how CEO compensation at Singapore Exchange has changed over time.

SGX:S68 CEO Compensation, January 20th 2020

Is Singapore Exchange Limited Growing?

On average over the last three years, Singapore Exchange Limited has grown earnings per share (EPS) by 6.5% each year (using a line of best fit). In the last year, its revenue is up 12%.

I think the revenue growth is good. And the improvement in earnings per share is modest but respectable. Although we'll stop short of calling the stock a top performer, we think the company has potential. You might want to check this free visual report on analyst forecasts for future earnings.

Has Singapore Exchange Limited Been A Good Investment?

Singapore Exchange Limited has served shareholders reasonably well, with a total return of 31% 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...

Boon Chye Loh is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. But we don't think the CEO compensation is a problem. So you may want to check if insiders are buying Singapore Exchange shares with their own money (free access).

Important note: Singapore Exchange 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.