It Looks Like OKH Global Ltd.'s (SGX:S3N) CEO May Expect Their Salary To Be Put Under The Microscope

Key Insights

• OKH Global to hold its Annual General Meeting on 25th of October
• CEO Wai Han Lock's total compensation includes salary of S$400.0k
• The total compensation is similar to the average for the industry
• OKH Global's three-year loss to shareholders was 43% while its EPS was down 0.09% over the past three years

The results at OKH Global Ltd. (SGX:S3N) have been quite disappointing recently and CEO Wai Han Lock bears some responsibility for this. At the upcoming AGM on 25th of October, shareholders can hear from the board including their plans for turning around performance. It would also be an opportunity for shareholders to influence management through voting on company resolutions such as executive remuneration, which could impact the firm significantly. We present the case why we think CEO compensation is out of sync with company performance.

See our latest analysis for OKH Global

How Does Total Compensation For Wai Han Lock Compare With Other Companies In The Industry?

According to our data, OKH Global Ltd. has a market capitalization of S$14m, and paid its CEO total annual compensation worth S$545k over the year to June 2024. We note that's an increase of 13% above last year. In particular, the salary of S$400.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the Singaporean Real Estate industry with market capitalizations under S$263m, the reported median total CEO compensation was S$647k. This suggests that OKH Global remunerates its CEO largely in line with the industry average.

Component	2024	2023	Proportion (2024)
Salary	S$400k	S$400k	73%
Other	S$145k	S$83k	27%
Total Compensation	S$545k	S$483k	100%

On an industry level, roughly 59% of total compensation represents salary and 41% is other remuneration. It's interesting to note that OKH Global pays out a greater portion of remuneration through salary, compared to the industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

OKH Global Ltd.'s Growth

Earnings per share at OKH Global Ltd. are much the same as they were three years ago, albeit slightly lower. Its revenue is down 25% over the previous year.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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?

The return of -43% over three years would not have pleased OKH Global Ltd. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for OKH Global (2 are significant!) that you should be aware of before investing here.

Important note: OKH Global 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.