Does Willas-Array Electronics (Holdings) Limited's (SGX:BDR) CEO Pay Matter?

In 2014 Alvin Hon was appointed CEO of Willas-Array Electronics (Holdings) Limited (SGX:BDR). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Willas-Array Electronics (Holdings)

How Does Alvin Hon's Compensation Compare With Similar Sized Companies?

Our data indicates that Willas-Array Electronics (Holdings) Limited is worth S$39m, and total annual CEO compensation was reported as HK$2.0m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.7m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$2.0m.

So Alvin Hon is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see, below, how CEO compensation at Willas-Array Electronics (Holdings) has changed over time.

Is Willas-Array Electronics (Holdings) Limited Growing?

Over the last three years Willas-Array Electronics (Holdings) Limited has shrunk its earnings per share by an average of 43% per year (measured with a line of best fit). It saw its revenue drop 26% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Willas-Array Electronics (Holdings) Limited Been A Good Investment?

Willas-Array Electronics (Holdings) Limited has not done too badly by shareholders, with a total return of 0.7%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Alvin Hon is paid around what is normal the leaders of comparable size companies.

We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but one might argue that the company should improve returns to shareholders before increasing it. Shareholders may want to check for free if Willas-Array Electronics (Holdings) insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.