ASL Marine Holdings Ltd.'s (SGX:A04) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• ASL Marine Holdings to hold its Annual General Meeting on 19th of December
• CEO Kok Tian Ang's total compensation includes salary of S$290.4k
• The total compensation is similar to the average for the industry
• Over the past three years, ASL Marine Holdings' EPS grew by 88% and over the past three years, the total shareholder return was 5.1%

CEO Kok Tian Ang has done a decent job of delivering relatively good performance at ASL Marine Holdings Ltd. (SGX:A04) recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 19th of December. Here is our take on why we think the CEO compensation looks appropriate.

See our latest analysis 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$61m, and total annual CEO compensation was reported as S$440k for the year to June 2024. That's a notable increase of 43% on last year. We note that the salary portion, which stands at S$290.4k constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the Singaporean Machinery industry with market capitalizations below S$269m, we found that the median total CEO compensation was S$557k. So it looks like ASL Marine Holdings compensates Kok Tian Ang in line with the median for the industry. Furthermore, Kok Tian Ang directly owns S$11m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	S$290k	S$292k	66%
Other	S$150k	S$15k	34%
Total Compensation	S$440k	S$307k	100%

On an industry level, roughly 66% of total compensation represents salary and 34% is other remuneration. ASL Marine Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. 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 ASL Marine Holdings Ltd.'s Growth Numbers

ASL Marine Holdings Ltd.'s earnings per share (EPS) grew 88% per year over the last three years. In the last year, its revenue is down 3.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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?

ASL Marine Holdings Ltd. has generated a total shareholder return of 5.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.

In Summary...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, we still think that any proposed increase in CEO compensation will be examined closely to make sure the compensation is appropriate and linked to performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 5 warning signs for ASL Marine Holdings (of which 2 shouldn't be ignored!) that 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.