Should You Be Pleased About The CEO Pay At UOB-Kay Hian Holdings Limited’s (SGX:U10)
In 1981 Ee-chao Wee was appointed CEO of UOB-Kay Hian Holdings Limited (SGX:U10). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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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How Does Ee-chao Wee’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that UOB-Kay Hian Holdings Limited has a market cap of S$1.0b, and is paying total annual CEO compensation of S$3.4m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at S$487k. We examined companies with market caps from S$540m to S$2.2b, and discovered that the median CEO total compensation of that group was S$49k.
As you can see, Ee-chao Wee is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean UOB-Kay Hian Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at UOB-Kay Hian Holdings has changed from year to year.
Is UOB-Kay Hian Holdings Limited Growing?
UOB-Kay Hian Holdings Limited has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years (using a line of best fit). Its revenue is down -1.9% over last year.
I would prefer it if there was revenue growth, 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. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has UOB-Kay Hian Holdings Limited Been A Good Investment?
Given the total loss of 2.9% over three years, many shareholders in UOB-Kay Hian Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at UOB-Kay Hian Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Considering this, we have the opinion that the CEO pay is more on the generous side, than the modest side. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at UOB-Kay Hian 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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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.
