How Much Did Hong Leong Asia Ltd’s (SGX:H22) CEO Pocket Last Year?
Philip Ting has been the CEO of Hong Leong Asia Ltd (SGX:H22) since 2013. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for Hong Leong Asia
How Does Philip Ting’s Compensation Compare With Similar Sized Companies?
According to our data, Hong Leong Asia Ltd has a market capitalization of S$393m, and pays its CEO total annual compensation worth S$1.1m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at S$702k. When we examined a selection of companies with market caps ranging from S$138m to S$550m, we found the median CEO compensation was S$646k.
It would therefore appear that Hong Leong Asia Ltd pays Philip Ting more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Hong Leong Asia, below.
Is Hong Leong Asia Ltd Growing?
Hong Leong Asia Ltd has increased its earnings per share (EPS) by an average of 1.1% a year, over the last three years Its revenue is up 3.0% over last year.
I’d prefer higher revenue growth, but the modest improvement in EPS is good. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Hong Leong Asia Ltd Been A Good Investment?
With a three year total loss of 23%, Hong Leong Asia Ltd would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Hong Leong Asia Ltd, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. So you may want to check if insiders are buying Hong Leong Asia shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
