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Is Far East Hospitality Trust's (SGX:Q5T) CEO Pay Fair?

Simply Wall St

The CEO of Far East Hospitality Trust (SGX:Q5T) is Gerald Lee. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

View our latest analysis for Far East Hospitality Trust

How Does Gerald Lee's Compensation Compare With Similar Sized Companies?

According to our data, Far East Hospitality Trust has a market capitalization of S$1.3b, and paid its CEO total annual compensation worth S$614k over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$472k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$551m to S$2.2b. The median total CEO compensation was S$606k.

So Gerald Lee is paid around the average of the companies we looked at. 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 a visual representation of the CEO compensation at Far East Hospitality Trust, below.

SGX:Q5T CEO Compensation, September 26th 2019

Is Far East Hospitality Trust Growing?

Far East Hospitality Trust has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.7% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. It could be important to check this free visual depiction of what analysts expect for the future.

Has Far East Hospitality Trust Been A Good Investment?

Most shareholders would probably be pleased with Far East Hospitality Trust for providing a total return of 36% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Gerald Lee is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. So one could argue the CEO compensation is quite modest, if you consider company performance! Whatever your view on compensation, you might want to check if insiders are buying or selling Far East Hospitality Trust shares (free trial).

If you want to buy a stock that is better than Far East Hospitality Trust, 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.