In 2014 Mark Richards was appointed CEO of Grand Banks Yachts Limited (SGX:G50). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Mark Richards’s Compensation Compare With Similar Sized Companies?
Our data indicates that Grand Banks Yachts Limited is worth S$56m, and total annual CEO compensation is S$862k. (This figure is for the year to June 2018). While we always look at total compensation first, we note that the salary component is less, at S$662k. We looked at a group of companies with market capitalizations under S$271m, and the median CEO compensation was S$271k.
Thus we can conclude that Mark Richards receives more in total compensation than the median of a group of companies in the same market, and of similar size to Grand Banks Yachts Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at Grand Banks Yachts has changed over time.
Is Grand Banks Yachts Limited Growing?
Grand Banks Yachts Limited has increased its earnings per share (EPS) by an average of 104% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 1.5%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Grand Banks Yachts Limited Been A Good Investment?
Most shareholders would probably be pleased with Grand Banks Yachts Limited for providing a total return of 38% 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.
We compared total CEO remuneration at Grand Banks Yachts Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Grand Banks Yachts (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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 email@example.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.