Why Halcyon Agri Corporation Limited’s (SGX:5VJ) CEO Pay Matters To You

Robert Meyer has been the CEO of Halcyon Agri Corporation Limited (SGX:5VJ) since 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

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See our latest analysis for Halcyon Agri

How Does Robert Meyer’s Compensation Compare With Similar Sized Companies?

According to our data, Halcyon Agri Corporation Limited has a market capitalization of S$798m, and pays its CEO total annual compensation worth US$3.4m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$900k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$275m to S$1.1b. The median total CEO compensation was S$461k.

Thus we can conclude that Robert Meyer receives more in total compensation than the median of a group of companies in the same market, and of similar size to Halcyon Agri Corporation Limited. However, this doesn’t necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Halcyon Agri has changed from year to year.

SGX:5VJ CEO Compensation, May 22nd 2019
SGX:5VJ CEO Compensation, May 22nd 2019

Is Halcyon Agri Corporation Limited Growing?

Over the last three years Halcyon Agri Corporation Limited has shrunk its earnings per share by an average of 1.1% per year (measured with a line of best fit). Revenue was pretty flat on last year.

Unfortunately there is a complete lack of earnings per share improvement, over three years. And the flat revenue hardly impresses. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Halcyon Agri Corporation Limited Been A Good Investment?

Since shareholders would have lost about 32% over three years, some Halcyon Agri Corporation Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

We compared total CEO remuneration at Halcyon Agri Corporation Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Halcyon Agri shares (free trial).

If you want to buy a stock that is better than Halcyon Agri, this free list of high return, low debt companies is a great place to look.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.