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Is Great Eastern Holdings Limited's (SGX:G07) CEO Pay Fair?

Simply Wall St

Hock Seng Khor has been the CEO of Great Eastern Holdings Limited (SGX:G07) since 2015. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Great Eastern Holdings

How Does Hock Seng Khor's Compensation Compare With Similar Sized Companies?

Our data indicates that Great Eastern Holdings Limited is worth S$10b, and total annual CEO compensation was reported as S$5.7m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$1.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$5.4b to S$16b. The median total CEO compensation was S$5.1m.

That means Hock Seng Khor receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Great Eastern Holdings, below.

SGX:G07 CEO Compensation, November 13th 2019

Is Great Eastern Holdings Limited Growing?

Great Eastern Holdings Limited has increased its earnings per share (EPS) by an average of 3.7% a year, over the last three years (using a line of best fit). It achieved revenue growth of 1.3% over the last year.

I'm not particularly impressed by the revenue growth, but it is good to see modest EPS growth. Considering these factors I'd say performance has been pretty decent, though not amazing. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Great Eastern Holdings Limited Been A Good Investment?

With a total shareholder return of 13% over three years, Great Eastern Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Hock Seng Khor is paid around what is normal the leaders of comparable size companies.

We think many would like to see better growth. But we don't think the CEO compensation is a problem. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Great Eastern Holdings (free visualization of insider trades).

Important note: Great Eastern Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE 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.