A Look At Tuan Sing Holdings' (SGX:T24) CEO Remuneration

This article will reflect on the compensation paid to William Liem Nursalim who has served as CEO of Tuan Sing Holdings Limited (SGX:T24) since 2008. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

Check out our latest analysis for Tuan Sing Holdings

Comparing Tuan Sing Holdings Limited's CEO Compensation With the industry

Our data indicates that Tuan Sing Holdings Limited has a market capitalization of S$356m, and total annual CEO compensation was reported as S$1.4m for the year to December 2019. That's a modest increase of 5.1% on the prior year. We note that the salary portion, which stands at S$864.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from S$134m to S$537m, we found that the median CEO total compensation was S$466k. Accordingly, our analysis reveals that Tuan Sing Holdings Limited pays William Liem Nursalim north of the industry median.

On an industry level, roughly 58% of total compensation represents salary and 42% is other remuneration. There isn't a significant difference between Tuan Sing Holdings and the broader market, in terms of salary allocation in the overall compensation package. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Tuan Sing Holdings Limited's Growth Numbers

Over the past three years, Tuan Sing Holdings Limited has seen its earnings per share (EPS) grow by 16% per year. It saw its revenue drop 24% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Tuan Sing Holdings Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, Tuan Sing Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, William Liem is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say William Liem is underpaid, in fact compensation is definitely on the higher side.

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 did our research and identified 4 warning signs (and 2 which don't sit too well with us) in Tuan Sing Holdings we think you should know about.

Switching gears from Tuan Sing Holdings, 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. 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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