We Think Some Shareholders May Hesitate To Increase Wee Hur Holdings Ltd.'s (SGX:E3B) CEO Compensation

Key Insights

• Wee Hur Holdings to hold its Annual General Meeting on 26th of April
• CEO Yeow Lian Goh's total compensation includes salary of S$707.8k
• The total compensation is 592% higher than the average for the industry
• Over the past three years, Wee Hur Holdings' EPS grew by 76% and over the past three years, the total loss to shareholders 7.5%

In the past three years, shareholders of Wee Hur Holdings Ltd. (SGX:E3B) have seen a loss on their investment. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. Shareholders may want to question the board on the future direction of the company at the upcoming AGM on 26th of April. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We discuss below why we think shareholders should be cautious of approving a raise for the CEO at the moment.

See our latest analysis for Wee Hur Holdings

Comparing Wee Hur Holdings Ltd.'s CEO Compensation With The Industry

Our data indicates that Wee Hur Holdings Ltd. has a market capitalization of S$165m, and total annual CEO compensation was reported as S$3.9m for the year to December 2023. We note that's a decrease of 8.2% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$708k.

In comparison with other companies in the Singapore Construction industry with market capitalizations under S$272m, the reported median total CEO compensation was S$568k. This suggests that Yeow Lian Goh is paid more than the median for the industry. Moreover, Yeow Lian Goh also holds S$11m worth of Wee Hur Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2023	2022	Proportion (2023)
Salary	S$708k	S$728k	18%
Other	S$3.2m	S$3.6m	82%
Total Compensation	S$3.9m	S$4.3m	100%

Speaking on an industry level, nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. It's interesting to note that Wee Hur Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

Wee Hur Holdings Ltd.'s Growth

Wee Hur Holdings Ltd.'s earnings per share (EPS) grew 76% per year over the last three years. In the last year, its revenue is up 4.1%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. 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 Wee Hur Holdings Ltd. Been A Good Investment?

Since shareholders would have lost about 7.5% over three years, some Wee Hur Holdings Ltd. investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. The fact that the stock price hasn't grown along with earnings may indicate that other issues may be affecting that stock. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for Wee Hur Holdings you should be aware of, and 1 of them is a bit concerning.

Important note: Wee Hur Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.