This Is The Reason Why We Think ASL Marine Holdings Ltd.'s (SGX:A04) CEO Deserves A Bump Up To Their Compensation
Key Insights
ASL Marine Holdings will host its Annual General Meeting on 31st of October
Total pay for CEO Kok Tian Ang includes S$291.7k salary
The total compensation is 46% less than the average for the industry
ASL Marine Holdings' EPS grew by 18% over the past three years while total shareholder return over the past three years was 57%
The impressive results at ASL Marine Holdings Ltd. (SGX:A04) recently will be great news for shareholders. At the upcoming AGM on 31st of October, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Here we will show why we think CEO compensation is appropriate and discuss the case for a pay rise.
See our latest analysis for ASL Marine Holdings
How Does Total Compensation For Kok Tian Ang Compare With Other Companies In The Industry?
According to our data, ASL Marine Holdings Ltd. has a market capitalization of S$36m, and paid its CEO total annual compensation worth S$307k over the year to June 2023. We note that's an increase of 12% above last year. Notably, the salary which is S$291.7k, represents most of the total compensation being paid.
For comparison, other companies in the Singaporean Machinery industry with market capitalizations below S$274m, reported a median total CEO compensation of S$570k. In other words, ASL Marine Holdings pays its CEO lower than the industry median. Furthermore, Kok Tian Ang directly owns S$6.3m worth of shares in the company, implying that they are deeply invested in the company's success.
Component | 2023 | 2022 | Proportion (2023) |
Salary | S$292k | S$267k | 95% |
Other | S$15k | S$8.3k | 5% |
Total Compensation | S$307k | S$275k | 100% |
On an industry level, roughly 76% of total compensation represents salary and 24% is other remuneration. ASL Marine Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
ASL Marine Holdings Ltd.'s Growth
ASL Marine Holdings Ltd.'s earnings per share (EPS) grew 18% per year over the last three years. In the last year, its revenue is up 43%.
Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has ASL Marine Holdings Ltd. Been A Good Investment?
Most shareholders would probably be pleased with ASL Marine Holdings Ltd. for providing a total return of 57% 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...
ASL Marine Holdings pays its CEO a majority of compensation through a salary. Seeing that company performance has been quite good recently, some shareholders may feel that CEO compensation may not be the biggest focus in the upcoming AGM. In saying that, some shareholders may feel that the more important issues to be addressed may be how the management plans to steer the company towards sustainable profitability in the future.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 4 warning signs for ASL Marine Holdings you should be aware of, and 1 of them shouldn't be ignored.
Switching gears from ASL Marine Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
