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Does Singapore Telecommunications Limited's (SGX:Z74) CEO Pay Compare Well With Peers?

Simply Wall St

Sock Koong Chua has been the CEO of Singapore Telecommunications Limited (SGX:Z74) since 2007. First, this article will compare CEO compensation with compensation at other large companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Singapore Telecommunications

How Does Sock Koong Chua'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$52b, and reported total annual CEO compensation of S$3.5m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at S$1.6m. We looked at a group of companies with market capitalizations over S$11b and the median CEO total compensation was S$4.6m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.

So Sock Koong Chua is paid around the average of 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 Singapore Telecommunications, below.

SGX:Z74 CEO Compensation, October 15th 2019

Is Singapore Telecommunications Limited Growing?

Singapore Telecommunications Limited has reduced its earnings per share by an average of 7.2% a year, over the last three years (measured with a line of best fit). Revenue was pretty flat on last year.

Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.

Has Singapore Telecommunications Limited Been A Good Investment?

Since shareholders would have lost about 5.5% over three years, some Singapore Telecommunications Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Sock Koong Chua is close enough to the median pay for a CEO of a large company .

Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Singapore Telecommunications shares with their own money (free access).

If you want to buy a stock that is better than Singapore Telecommunications, this free list of high return, low debt companies is a great place to look.

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 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. Thank you for reading.