We Think Some Shareholders May Hesitate To Increase OKH Global Ltd.'s (SGX:S3N) CEO Compensation

In this article:

Key Insights

  • OKH Global will host its Annual General Meeting on 25th of October

  • Salary of S$400.0k is part of CEO Wai Han Lock's total remuneration

  • The total compensation is 122% higher than the average for the industry

  • Over the past three years, OKH Global's EPS grew by 9.7% and over the past three years, the total shareholder return was 36%

CEO Wai Han Lock has done a decent job of delivering relatively good performance at OKH Global Ltd. (SGX:S3N) recently. As shareholders go into the upcoming AGM on 25th of October, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders will still be cautious of paying the CEO excessively.

View our latest analysis for OKH Global

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

Our data indicates that OKH Global Ltd. has a market capitalization of S$21m, and total annual CEO compensation was reported as S$483k for the year to June 2023. This means that the compensation hasn't changed much from last year. Notably, the salary which is S$400.0k, represents most of the total compensation being paid.

In comparison with other companies in the Singaporean Real Estate industry with market capitalizations under S$274m, the reported median total CEO compensation was S$217k. Accordingly, our analysis reveals that OKH Global Ltd. pays Wai Han Lock north of the industry median.

Component

2023

2022

Proportion (2023)

Salary

S$400k

S$395k

83%

Other

S$83k

S$74k

17%

Total Compensation

S$483k

S$469k

100%

On an industry level, roughly 53% of total compensation represents salary and 47% is other remuneration. OKH Global pays out 83% of remuneration in the form of a salary, significantly higher than the industry average. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

ceo-compensation
ceo-compensation

A Look at OKH Global Ltd.'s Growth Numbers

OKH Global Ltd. has seen its earnings per share (EPS) increase by 9.7% a year over the past three years. Its revenue is down 12% over the previous year.

We would argue that the lack of revenue growth in the last year is less than ideal, but the modest EPS growth gives us some relief. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 OKH Global Ltd. Been A Good Investment?

Boasting a total shareholder return of 36% over three years, OKH Global Ltd. 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...

The company's decent performance might have made most shareholders happy, possibly making CEO remuneration the least of the concerns to be discussed in the upcoming AGM. Still, not all shareholders might be in favor of a pay raise to the CEO, seeing that they are already being 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. That's why we did our research, and identified 4 warning signs for OKH Global (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

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.

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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.

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