Here's Why CosmoSteel Holdings Limited's (SGX:B9S) CEO Compensation Is The Least Of Shareholders' Concerns

Key Insights

• CosmoSteel Holdings will host its Annual General Meeting on 29th of January
• CEO Jack Ong's total compensation includes salary of S$390.2k
• The total compensation is similar to the average for the industry
• CosmoSteel Holdings' EPS declined by 16% over the past three years while total shareholder return over the past three years was 43%

CEO Jack Ong has done a decent job of delivering relatively good performance at CosmoSteel Holdings Limited (SGX:B9S) recently. As shareholders go into the upcoming AGM on 29th of January, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

See our latest analysis for CosmoSteel Holdings

Comparing CosmoSteel Holdings Limited's CEO Compensation With The Industry

According to our data, CosmoSteel Holdings Limited has a market capitalization of S$31m, and paid its CEO total annual compensation worth S$565k over the year to September 2023. That's a notable increase of 12% on last year. Notably, the salary which is S$390.2k, represents most of the total compensation being paid.

In comparison with other companies in the Singapore Energy Services industry with market capitalizations under S$268m, the reported median total CEO compensation was S$794k. From this we gather that Jack Ong is paid around the median for CEOs in the industry. Furthermore, Jack Ong directly owns S$4.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2023	2022	Proportion (2023)
Salary	S$390k	S$360k	69%
Other	S$174k	S$145k	31%
Total Compensation	S$565k	S$505k	100%

On an industry level, roughly 68% of total compensation represents salary and 32% is other remuneration. Our data reveals that CosmoSteel Holdings allocates salary more or less in line with the wider market. 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.

CosmoSteel Holdings Limited's Growth

Over the last three years, CosmoSteel Holdings Limited has shrunk its earnings per share by 16% per year. It achieved revenue growth of 81% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. 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. 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 CosmoSteel Holdings Limited Been A Good Investment?

We think that the total shareholder return of 43%, over three years, would leave most CosmoSteel Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

Some shareholders will be pleased by the relatively good results, however, the results could still be improved. Still, we think that until shareholders see an improvement in EPS growth, they may find it hard to justify a pay rise for the CEO.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 3 warning signs for CosmoSteel Holdings that investors should think about before committing capital to this stock.

Switching gears from CosmoSteel 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.