Ciliandra Fangiono became the CEO of First Resources Limited (SGX:EB5) in 2003. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for First Resources
How Does Ciliandra Fangiono’s Compensation Compare With Similar Sized Companies?
According to our data, First Resources Limited has a market capitalization of S$2.4b, and pays its CEO total annual compensation worth US$1.4m. (This figure is for the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at US$850k. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of S$1.4b to S$4.4b. The median total CEO compensation was S$663k.
It would therefore appear that First Resources Limited pays Ciliandra Fangiono more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at First Resources has changed from year to year.
Is First Resources Limited Growing?
First Resources Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years In the last year, its revenue is up 4.3%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy.
It could be important to check this free visual depiction of what analysts expect for the future.
Has First Resources Limited Been A Good Investment?
Since shareholders would have lost about 11% over three years, some First Resources Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary…
We compared total CEO remuneration at First Resources Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if First Resources insiders are buying or selling shares.
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.