The CEO of N1 Holdings Limited (ASX:N1H) is Ren Hor Wong, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for N1 Holdings
How Does Total Compensation For Ren Hor Wong Compare With Other Companies In The Industry?
At the time of writing, our data shows that N1 Holdings Limited has a market capitalization of AU$6.9m, and reported total annual CEO compensation of AU$414k for the year to June 2020. This means that the compensation hasn't changed much from last year. We note that the salary portion, which stands at AU$368.0k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below AU$260m, we found that the median total CEO compensation was AU$587k. This suggests that N1 Holdings remunerates its CEO largely in line with the industry average. Moreover, Ren Hor Wong also holds AU$4.3m worth of N1 Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | AU$368k | AU$375k | 89% |
| Other | AU$46k | AU$39k | 11% |
| Total Compensation | AU$414k | AU$413k | 100% |
Talking in terms of the industry, salary represented approximately 78% of total compensation out of all the companies we analyzed, while other remuneration made up 22% of the pie. N1 Holdings pays out 89% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
A Look at N1 Holdings Limited's Growth Numbers
N1 Holdings Limited has reduced its earnings per share by 23% a year over the last three years. Its revenue is up 3.5% over the last year.
The decline in EPS is a bit concerning. The modest increase in revenue in the last year isn't enough to make us overlook the disappointing change in EPS. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 N1 Holdings Limited Been A Good Investment?
Since shareholders would have lost about 29% over three years, some N1 Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
As we noted earlier, N1 Holdings pays its CEO in line with similar-sized companies belonging to the same industry. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for N1 Holdings (3 are concerning!) that you should be aware of before investing here.
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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Access Free AnalysisThis 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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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About ASX:N1H
N1 Holdings
A property-backed private credit lending company, engages in the provision of property financing, and mortgage management and broking services to customers in Australia.
Moderate with proven track record.
