In 2008 William Liem Nursalim was appointed CEO of Tuan Sing Holdings Limited (SGX:T24). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does William Liem Nursalim’s Compensation Compare With Similar Sized Companies?
Our data indicates that Tuan Sing Holdings Limited is worth S$278m, and total annual CEO compensation was reported as S$1.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at S$800k. We examined companies with market caps from S$142m to S$566m, and discovered that the median CEO total compensation of that group was S$1.3m.
That means William Liem Nursalim receives fairly typical remuneration for the CEO of a company that size. 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 Tuan Sing Holdings has changed over time.
Is Tuan Sing Holdings Limited Growing?
Over the last three years Tuan Sing Holdings Limited has grown its earnings per share (EPS) by an average of 40% per year (using a line of best fit). Its revenue is down 7.6% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tuan Sing Holdings Limited Been A Good Investment?
Since shareholders would have lost about 31% over three years, some Tuan Sing Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
William Liem Nursalim is paid around the same as most CEOs of similar size companies.
We think that the EPS growth is very pleasing, but we find the returns over the last three years to be lacking. 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. Taking a breather from CEO compensation, we’ve spotted 4 warning signs for Tuan Sing Holdings (of which 1 is potentially serious!) you should know about in order to have a holistic understanding of the stock.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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