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Is Trio-Tech International (NYSEMKT:TRT) Overpaying Its CEO?

Simply Wall St

In 1990 Siew Yong was appointed CEO of Trio-Tech International (NYSEMKT:TRT). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

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See our latest analysis for Trio-Tech International

How Does Siew Yong's Compensation Compare With Similar Sized Companies?

Our data indicates that Trio-Tech International is worth US$11m, and total annual CEO compensation is US$460k. (This number is for the twelve months until June 2018). We think total compensation is more important but we note that the CEO salary is lower, at US$251k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$440k.

That means Siew Yong receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at Trio-Tech International has changed over time.

AMEX:TRT CEO Compensation, May 15th 2019

Is Trio-Tech International Growing?

On average over the last three years, Trio-Tech International has shrunk earnings per share by 2.4% each year (measured with a line of best fit). In the last year, its revenue is down -3.2%.

The lack of earnings per share growth in the last three years is unimpressive. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Trio-Tech International Been A Good Investment?

Since shareholders would have lost about 6.2% over three years, some Trio-Tech International shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Siew Yong is paid around the same as most CEOs of similar size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Trio-Tech International shares with their own money (free access).

Important note: Trio-Tech International 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.