It would be hard to discount the role that CEO Wai Han Lock has played in delivering the impressive results at OKH Global Ltd. (SGX:S3N) recently. Coming up to the next AGM on 26 October 2022, shareholders would be keeping this in mind. The focus will probably be on the future company strategy as shareholders cast their votes on resolutions such as executive remuneration and other matters. In light of the great performance, we discuss the case why we think CEO compensation is not excessive.

Check out our latest analysis for OKH Global

Comparing OKH Global Ltd.'s CEO Compensation With The Industry

According to our data, OKH Global Ltd. has a market capitalization of S$28m, and paid its CEO total annual compensation worth S$469k over the year to June 2022. That is, the compensation was roughly the same as last year. In particular, the salary of S$395.0k, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below S$285m, we found that the median total CEO compensation was S$470k. So it looks like OKH Global compensates Wai Han Lock in line with the median for the industry.

Speaking on an industry level, nearly 55% of total compensation represents salary, while the remainder of 45% is other remuneration. OKH Global is paying a higher share of its remuneration through a salary in comparison to the overall 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

OKH Global Ltd.'s earnings per share (EPS) grew 19% per year over the last three years. In the last year, its revenue is up 2.0%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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?

Most shareholders would probably be pleased with OKH Global Ltd. for providing a total return of 56% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

To Conclude...

Seeing that the company has put in a relatively good performance, the CEO remuneration policy may not be the focus at the AGM. Instead, investors might be more interested in discussions that would help manage their longer-term growth expectations such as company business strategies and future growth potential.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We did our research and spotted 2 warning signs for OKH Global that investors should look into moving forward.

Switching gears from OKH Global, 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.

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