Key Things To Understand About ISP Global's (HKG:8487) CEO Pay Cheque

The CEO of ISP Global Limited (HKG:8487) is Shew Lang Choon, 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 ISP Global

How Does Total Compensation For Shew Lang Choon Compare With Other Companies In The Industry?

According to our data, ISP Global Limited has a market capitalization of HK$1.5b, and paid its CEO total annual compensation worth S$415k over the year to June 2020. We note that's an increase of 49% above last year. While we always look at total compensation first, our analysis shows that the salary component is less, at S$204k.

On comparing similar companies from the same industry with market caps ranging from HK$776m to HK$3.1b, we found that the median CEO total compensation was S$358k. So it looks like ISP Global compensates Shew Lang Choon in line with the median for the industry.

On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. In ISP Global's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

ISP Global Limited's Growth

ISP Global Limited has seen its earnings per share (EPS) increase by 89% a year over the past three years. In the last year, its revenue is down 38%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 ISP Global Limited Been A Good Investment?

We think that the total shareholder return of 131%, over three years, would leave most ISP Global Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

As we touched on above, ISP Global Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. The company is growing EPS and total shareholder returns have been pleasing. Indeed, many might consider that Shew Lang is compensated rather modestly, given the solid company performance! Stockholders might even be okay with a bump in pay, seeing as how investor returns have been so strong.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 3 warning signs for ISP Global you should be aware of, and 1 of them is a bit concerning.

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.

When trading ISP Global or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.