Increases to OKH Global Ltd.'s (SGX:S3N) CEO Compensation Might Cool off for now

Key Insights

• OKH Global will host its Annual General Meeting on 25th of October
• Salary of S$400.0k is part of CEO Wai Han Lock's total remuneration
• The overall pay is 122% above the industry average
• OKH Global's total shareholder return over the past three years was 36% while its EPS grew by 9.7% over the past three years

CEO Wai Han Lock has done a decent job of delivering relatively good performance at OKH Global Ltd. (SGX:S3N) 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 25th of October. However, some shareholders may still be hesitant of being overly generous with CEO compensation.

Check out our latest analysis for OKH Global

Comparing OKH Global Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that OKH Global Ltd. has a market capitalization of S$21m, and reported total annual CEO compensation of S$483k for the year to June 2023. This means that the compensation hasn't changed much from last year. In particular, the salary of S$400.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the Singaporean Real Estate industry with market capitalizations below S$274m, we found that the median total CEO compensation was S$217k. Hence, we can conclude that Wai Han Lock is remunerated higher than the industry median.

Component	2023	2022	Proportion (2023)
Salary	S$400k	S$395k	83%
Other	S$83k	S$74k	17%
Total Compensation	S$483k	S$469k	100%

On an industry level, around 53% of total compensation represents salary and 47% is other remuneration. OKH Global is paying a higher share of its remuneration through a salary in comparison to the overall industry. 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.

A Look at OKH Global Ltd.'s Growth Numbers

OKH Global Ltd. has seen its earnings per share (EPS) increase by 9.7% a year over the past three years. It saw its revenue drop 12% over the last year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 OKH Global Ltd. Been A Good Investment?

Most shareholders would probably be pleased with OKH Global Ltd. for providing a total return of 36% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 4 warning signs for OKH Global (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Switching gears from OKH Global, 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.