Should You Worry About Raffles United Holdings Ltd's (SGX:K22) CEO Salary Level?
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The CEO of Raffles United Holdings Ltd (SGX:K22) is Teng Beng Teo. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Raffles United Holdings
How Does Teng Beng Teo's Compensation Compare With Similar Sized Companies?
Our data indicates that Raffles United Holdings Ltd is worth S$12m, and total annual CEO compensation is S$286k. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at S$240k. We examined a group of similar sized companies, with market capitalizations of below S$273m. The median CEO total compensation in that group is S$272k.
So Teng Beng Teo receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Raffles United Holdings has changed over time.
Is Raffles United Holdings Ltd Growing?
On average over the last three years, Raffles United Holdings Ltd has grown earnings per share (EPS) by 61% each year (using a line of best fit). Its revenue is down -6.1% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Raffles United Holdings Ltd Been A Good Investment?
With a three year total loss of 63%, Raffles United Holdings Ltd would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Teng Beng Teo is paid around what is normal the leaders of comparable size companies.
We'd say the company can boast of its EPS growth, but it's disappointing to see negative shareholder returns over three years. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Raffles United Holdings shares (free trial).
Important note: Raffles United 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.
