Key Insights
- Straco's Annual General Meeting to take place on 17th of April
- Total pay for CEO Hsioh Kwang Wu includes S$992.0k salary
- The total compensation is 367% higher than the average for the industry
- Straco's total shareholder return over the past three years was 1.3% while its EPS grew by 33% over the past three years
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
Performance at Straco Corporation Limited (SGX:S85) has been reasonably good and CEO Hsioh Kwang Wu has done a decent job of steering the company in the right direction. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 17th of April. However, some shareholders may still want to keep CEO compensation within reason.
How Does Total Compensation For Hsioh Kwang Wu Compare With Other Companies In The Industry?
Our data indicates that Straco Corporation Limited has a market capitalization of S$338m, and total annual CEO compensation was reported as S$1.4m for the year to December 2024. That's a modest increase of 4.1% on the prior year. In particular, the salary of S$992.0k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Singapore Hospitality industry with market capitalizations ranging between S$134m and S$534m had a median total CEO compensation of S$303k. Hence, we can conclude that Hsioh Kwang Wu is remunerated higher than the industry median. Furthermore, Hsioh Kwang Wu directly owns S$3.5m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2024 | 2023 | Proportion (2024) |
| Salary | S$992k | S$994k | 70% |
| Other | S$425k | S$367k | 30% |
| Total Compensation | S$1.4m | S$1.4m | 100% |
Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. It's interesting to note that Straco allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Straco Corporation Limited's Growth
Straco Corporation Limited's earnings per share (EPS) grew 33% per year over the last three years. In the last year, its revenue changed by just 0.8%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Straco Corporation Limited Been A Good Investment?
With a total shareholder return of 1.3% over three years, Straco Corporation Limited has done okay by shareholders, but there's always room for improvement. In light of that, investors might probably want to see an improvement on their returns before they feel generous about increasing the CEO remuneration.
To Conclude...
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. 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.
While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 1 warning sign for Straco that investors should think about before committing capital to this 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.
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.
