Does Singapore Telecommunications Limited’s (SGX:Z74) CEO Pay Reflect Performance?
Chua Sock Koong has been the CEO of Singapore Telecommunications Limited (SGX:Z74) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. 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.
View our latest analysis for Singapore Telecommunications
How Does Chua Sock Koong’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Singapore Telecommunications Limited has a market cap of S$50b, and is paying total annual CEO compensation of S$6.1m. That’s below the compensation, last year. When we examined a group of companies with market caps over S$11b, we found that their median CEO compensation was S$6.1m.
So Chua Sock Koong receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Singapore Telecommunications has changed from year to year.
Is Singapore Telecommunications Limited Growing?
Singapore Telecommunications Limited has increased its earnings per share (EPS) by an average of 8.5% a year, over the last three years Its revenue is up 2.2% over last year.
I’m not particularly impressed by the revenue growth, but the modest improvement in EPS is good. Considering these factors I’d say performance has been pretty decent, though not amazing.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Singapore Telecommunications Limited Been A Good Investment?
Since shareholders would have lost about 7.9% over three years, some Singapore Telecommunications Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
Chua Sock Koong is paid around what is normal the leaders of larger companies.
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So many would argue that the CEO is certainly not underpaid.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
