Here's Why ASL Marine Holdings Ltd.'s (SGX:A04) CEO May Deserve A Raise

Key Insights

• ASL Marine Holdings will host its Annual General Meeting on 31st of October
• Total pay for CEO Kok Tian Ang includes S$291.7k salary
• Total compensation is 46% below industry average
• Over the past three years, ASL Marine Holdings' EPS grew by 18% and over the past three years, the total shareholder return was 57%

Shareholders will be pleased by the impressive results for ASL Marine Holdings Ltd. (SGX:A04) recently and CEO Kok Tian Ang has played a key role. At the upcoming AGM on 31st of October, they will get a chance to hear the board review the company results, discuss future strategy and cast their vote on any resolutions such as executive remuneration. Let's take a look at why we think the CEO has done a good job and we'll present the case for a bump in pay.

See our latest analysis for ASL Marine Holdings

Comparing ASL Marine Holdings Ltd.'s CEO Compensation With The Industry

According to our data, ASL Marine Holdings Ltd. has a market capitalization of S$36m, and paid its CEO total annual compensation worth S$307k over the year to June 2023. That's a notable increase of 12% on last year. In particular, the salary of S$291.7k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Singaporean Machinery industry with market capitalizations under S$274m, the reported median total CEO compensation was S$570k. Accordingly, ASL Marine Holdings pays its CEO under the industry median. What's more, Kok Tian Ang holds S$6.3m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	S$292k	S$267k	95%
Other	S$15k	S$8.3k	5%
Total Compensation	S$307k	S$275k	100%

On an industry level, around 76% of total compensation represents salary and 24% is other remuneration. ASL Marine Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. 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 18% per year over the last three years. In the last year, its revenue is up 43%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has ASL Marine Holdings Ltd. Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most ASL Marine Holdings Ltd. shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

ASL Marine Holdings pays its CEO a majority of compensation through a salary. Given the improved performance, shareholders may be more forgiving of CEO compensation in the upcoming AGM. However, despite the strong growth in earnings and share price growth, the focus for shareholders would be how the company plans to steer the company towards sustainable profitability in the near future.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 4 warning signs for ASL Marine Holdings (1 is potentially serious!) that you should be aware of before investing here.

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. 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.