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Is Global Palm Resources Holdings Limited's (SGX:BLW) CEO Overpaid Relative To Its Peers?

Simply Wall St

The CEO of Global Palm Resources Holdings Limited (SGX:BLW) is Suparno Adijanto Tan. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Global Palm Resources Holdings

How Does Suparno Adijanto Tan's Compensation Compare With Similar Sized Companies?

According to our data, Global Palm Resources Holdings Limited has a market capitalization of S$41m, and pays its CEO total annual compensation worth Rp272k. (This figure is for the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at Rp250k. We took a group of companies with market capitalizations below S$271m, and calculated the median CEO total compensation to be S$271k.

That means Suparno Adijanto Tan 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 Global Palm Resources Holdings has changed over time.

SGX:BLW CEO Compensation, April 24th 2019

Is Global Palm Resources Holdings Limited Growing?

Global Palm Resources Holdings Limited has reduced its earnings per share by an average of 29% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -26%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Global Palm Resources Holdings Limited Been A Good Investment?

Given the total loss of 8.0% over three years, many shareholders in Global Palm Resources Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Suparno Adijanto Tan is close enough to the median pay for a CEO of a similar sized company .

Returns have been disappointing and the company is not growing its earnings per share. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Global Palm Resources Holdings (free visualization of insider trades).

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.