Paul Coutts became the CEO of Singapore Post Limited (SGX:S08) in 2017. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Paul Coutts's Compensation Compare With Similar Sized Companies?
Our data indicates that Singapore Post Limited is worth S$2.1b, and total annual CEO compensation was reported as S$2.1m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at S$1.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$1.4b to S$4.3b. The median total CEO compensation was S$2.0m.
That means Paul Coutts 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 Post has changed over time.
Is Singapore Post Limited Growing?
Singapore Post Limited has reduced its earnings per share by an average of 46% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is up 9.2%.
Sadly for shareholders, earnings per share are actually down, over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Singapore Post Limited Been A Good Investment?
Since shareholders would have lost about 32% over three years, some Singapore Post Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Paul Coutts is paid around what is normal the leaders of comparable size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Singapore Post.
If you want to buy a stock that is better than Singapore Post, this free list of high return, low debt companies is a great place to look.
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