Melvyn Pun has been the CEO of Yoma Strategic Holdings Ltd. (SGX:Z59) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Melvyn Pun’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Yoma Strategic Holdings Ltd. has a market cap of S$607m, and is paying total annual CEO compensation of S$1.2m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at S$544k. We examined companies with market caps from S$276m to S$1.1b, and discovered that the median CEO total compensation of that group was S$461k.
Thus we can conclude that Melvyn Pun receives more in total compensation than the median of a group of companies in the same market, and of similar size to Yoma Strategic Holdings Ltd.. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Yoma Strategic Holdings has changed over time.
Is Yoma Strategic Holdings Ltd. Growing?
Over the last three years Yoma Strategic Holdings Ltd. has shrunk its earnings per share by an average of 25% per year (measured with a line of best fit). It saw its revenue drop -6.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. It could be important to check this free visual depiction of what analysts expect for the future.
Has Yoma Strategic Holdings Ltd. Been A Good Investment?
Since shareholders would have lost about 34% over three years, some Yoma Strategic Holdings Ltd. shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
We examined the amount Yoma Strategic Holdings Ltd. pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Yoma Strategic Holdings insiders are buying or selling shares.
If you want to buy a stock that is better than Yoma Strategic Holdings, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.