A Quick Analysis On Singapore Press Holdings' (SGX:T39) CEO Compensation

Simply Wall St
February 10, 2021
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Yat Chung Ng has been the CEO of Singapore Press Holdings Limited (SGX:T39) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Singapore Press Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Singapore Press Holdings

Comparing Singapore Press Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Singapore Press Holdings Limited has a market capitalization of S$1.9b, and reported total annual CEO compensation of S$1.4m for the year to August 2020. Notably, that's a decrease of 25% over the year before. We note that the salary portion, which stands at S$925.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between S$1.3b and S$4.2b, we discovered that the median CEO total compensation of that group was S$1.3m. So it looks like Singapore Press Holdings compensates Yat Chung Ng in line with the median for the industry. What's more, Yat Chung Ng holds S$358k worth of shares in the company in their own name.

Component20202019Proportion (2020)
Salary S$925k S$958k 69%
Other S$425k S$832k 31%
Total CompensationS$1.4m S$1.8m100%

Speaking on an industry level, nearly 90% of total compensation represents salary, while the remainder of 9.7% is other remuneration. In Singapore Press Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

SGX:T39 CEO Compensation February 11th 2021

Singapore Press Holdings Limited's Growth

Singapore Press Holdings Limited has reduced its earnings per share by 47% a year over the last three years. Its revenue is down 9.7% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has Singapore Press Holdings Limited Been A Good Investment?

With a three year total loss of 49% for the shareholders, Singapore Press Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Yat Chung is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Singapore Press Holdings that investors should look into moving forward.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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. 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.
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