Andy Luong became the CEO of UMS Holdings Limited (SGX:558) in 2005. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does Andy Luong's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that UMS Holdings Limited has a market cap of S$528m, and reported total annual CEO compensation of S$4.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at S$570k. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations from S$271m to S$1.1b, and the median CEO total compensation was S$900k.
Thus we can conclude that Andy Luong receives more in total compensation than the median of a group of companies in the same market, and of similar size to UMS Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at UMS Holdings has changed over time.
Is UMS Holdings Limited Growing?
UMS Holdings Limited has increased its earnings per share (EPS) by an average of 9.3% a year, over the last three years (using a line of best fit). It saw its revenue drop 17% over the last year.
I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. It could be important to check this free visual depiction of what analysts expect for the future.
Has UMS Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with UMS Holdings Limited for providing a total return of 140% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount UMS Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been great, though we might have liked stronger business growth. Considering this fine result for investors, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at UMS Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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