Haw Par Corporation Limited's (SGX:H02) CEO Compensation Is Looking A Bit Stretched At The Moment

Key Insights

• Haw Par to hold its Annual General Meeting on 23rd of April
• CEO Ee Lim Wee's total compensation includes salary of S$1.27m
• The total compensation is 700% higher than the average for the industry
• Haw Par's total shareholder return over the past three years was 18% while its EPS grew by 27% over the past three years

We've discovered 1 warning sign about Haw Par. View them for free.

Under the guidance of CEO Ee Lim Wee, Haw Par Corporation Limited (SGX:H02) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 23rd of April. However, some shareholders may still want to keep CEO compensation within reason.

See our latest analysis for Haw Par

How Does Total Compensation For Ee Lim Wee Compare With Other Companies In The Industry?

At the time of writing, our data shows that Haw Par Corporation Limited has a market capitalization of S$2.8b, and reported total annual CEO compensation of S$3.3m for the year to December 2024. That's mostly flat as compared to the prior year's compensation. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$1.3m.

In comparison with other companies in the Singapore Pharmaceuticals industry with market capitalizations ranging from S$1.3b to S$4.2b, the reported median CEO total compensation was S$417k. This suggests that Ee Lim Wee is paid more than the median for the industry. Furthermore, Ee Lim Wee directly owns S$7.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Component	2024	2023	Proportion (2024)
Salary	S$1.3m	S$1.3m	38%
Other	S$2.1m	S$2.1m	62%
Total Compensation	S$3.3m	S$3.3m	100%

Talking in terms of the industry, salary represented approximately 79% of total compensation out of all the companies we analyzed, while other remuneration made up 21% of the pie. In Haw Par's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Haw Par Corporation Limited's Growth Numbers

Over the past three years, Haw Par Corporation Limited has seen its earnings per share (EPS) grow by 27% per year. In the last year, its revenue is up 5.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Haw Par Corporation Limited Been A Good Investment?

Haw Par Corporation Limited has generated a total shareholder return of 18% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Haw Par that investors should be aware of in a dynamic business environment.

Important note: Haw Par 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.