Under the guidance of CEO Jack Ong, CosmoSteel Holdings Limited (SGX:B9S) 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 31 January 2023. However, some shareholders will still be cautious of paying the CEO excessively.
See our latest analysis for CosmoSteel Holdings
Comparing CosmoSteel Holdings Limited's CEO Compensation With The Industry
According to our data, CosmoSteel Holdings Limited has a market capitalization of S$35m, and paid its CEO total annual compensation worth S$505k over the year to September 2022. That's just a smallish increase of 6.8% on last year. We note that the salary portion, which stands at S$359.8k constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the Singapore Energy Services industry with market capitalizations below S$264m, we found that the median total CEO compensation was S$332k. Accordingly, our analysis reveals that CosmoSteel Holdings Limited pays Jack Ong north of the industry median. Furthermore, Jack Ong directly owns S$4.7m worth of shares in the company, implying that they are deeply invested in the company's success.
Component
2022
2021
Proportion (2022)
Salary
S$360k
S$360k
71%
Other
S$145k
S$112k
29%
Total Compensation
S$505k
S$472k
100%
On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. There isn't a significant difference between CosmoSteel 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.
SGX:B9S CEO Compensation January 24th 2023
CosmoSteel Holdings Limited's Growth
CosmoSteel Holdings Limited has reduced its earnings per share by 3.4% a year over the last three years. Its revenue is up 17% over the last year.
Investors would be a bit wary of companies that have lower EPS But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CosmoSteel Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 58% over three years, CosmoSteel Holdings 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.
In Summary...
Although the company has performed relatively well, we still think there are some areas that could be improved. We still think that some shareholders will be hesitant of increasing CEO pay until EPS growth improves, since they are already paid higher than the industry.
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. In our study, we found 3 warning signs for CosmoSteel Holdings you should be aware of, and 2 of them are a bit unpleasant.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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.
