Kok Tian Ang has been the CEO of ASL Marine Holdings Ltd. (SGX:A04) since 2003, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for ASL Marine Holdings.
Comparing ASL Marine Holdings Ltd.'s CEO Compensation With the industry
Our data indicates that ASL Marine Holdings Ltd. has a market capitalization of S$21m, and total annual CEO compensation was reported as S$290k for the year to June 2020. Notably, that's a decrease of 39% over the year before. Notably, the salary which is S$269.7k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under S$265m, the reported median total CEO compensation was S$117k. Hence, we can conclude that Kok Tian Ang is remunerated higher than the industry median. Furthermore, Kok Tian Ang directly owns S$3.9m worth of shares in the company, implying that they are deeply invested in the company's success.
On an industry level, roughly 64% of total compensation represents salary and 36% is other remuneration. ASL Marine Holdings pays out 93% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at ASL Marine Holdings Ltd.'s Growth Numbers
ASL Marine Holdings Ltd.'s earnings per share (EPS) grew 3.2% per year over the last three years. It saw its revenue drop 24% over the last year.
We would prefer it if there was revenue growth, but the modest improvement in EPS is good. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has ASL Marine Holdings Ltd. Been A Good Investment?
Given the total shareholder loss of 65% over three years, many shareholders in ASL Marine Holdings Ltd. are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
As we touched on above, ASL Marine Holdings Ltd. is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we have not been overly impressed by the business performance, the shareholder returns have been utterly depressing, over the last three years. This doesn't look good when you see that Kok Tian is earning more than the industry median. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which doesn't sit too well with us) in ASL Marine Holdings we think you should know about.
Switching gears from ASL Marine Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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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.
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