Here's Why Shareholders May Want To Be Cautious With Increasing Ossia International Limited's (SGX:O08) CEO Pay Packet

Key Insights

• Ossia International to hold its Annual General Meeting on 23rd of July
• Salary of S$157.5k is part of CEO Steven Goh's total remuneration
• The total compensation is 1,217% higher than the average for the industry
• Ossia International's EPS grew by 11% over the past three years while total shareholder return over the past three years was 35%

Under the guidance of CEO Steven Goh, Ossia International Limited (SGX:O08) has performed reasonably well recently. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 23rd of July. However, some shareholders may still want to keep CEO compensation within reason.

Check out our latest analysis for Ossia International

How Does Total Compensation For Steven Goh Compare With Other Companies In The Industry?

Our data indicates that Ossia International Limited has a market capitalization of S$39m, and total annual CEO compensation was reported as S$508k for the year to March 2024. That's a notable decrease of 20% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at S$157k.

On comparing similar-sized companies in the Singapore Retail Distributors industry with market capitalizations below S$269m, we found that the median total CEO compensation was S$39k. Hence, we can conclude that Steven Goh is remunerated higher than the industry median. Moreover, Steven Goh also holds S$8.9m worth of Ossia International stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2024	2023	Proportion (2024)
Salary	S$157k	S$197k	31%
Other	S$351k	S$439k	69%
Total Compensation	S$508k	S$636k	100%

On an industry level, roughly 96% of total compensation represents salary and 4% is other remuneration. In Ossia International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at Ossia International Limited's Growth Numbers

Over the past three years, Ossia International Limited has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue changed by just 0.09%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Ossia International Limited Been A Good Investment?

Boasting a total shareholder return of 35% over three years, Ossia International Limited has done well by shareholders. 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.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 4 warning signs for Ossia International that investors should think about before committing capital to this stock.

Switching gears from Ossia International, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com