The CEO of CEI Limited (SGX:AVV) is Ka Tan. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for CEI

How Does Ka Tan's Compensation Compare With Similar Sized Companies?

According to our data, CEI Limited has a market capitalization of S$84m, and pays its CEO total annual compensation worth S$539k. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at S$299k. We took a group of companies with market capitalizations below S$271m, and calculated the median CEO total compensation to be S$271k.

As you can see, Ka Tan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean CEI Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at CEI has changed from year to year.

Is CEI Limited Growing?

On average over the last three years, CEI Limited has shrunk earnings per share by 18% each year (measured with a line of best fit). In the last year, its revenue is up 2.6%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has CEI Limited Been A Good Investment?

Boasting a total shareholder return of 84% over three years, CEI Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared the total CEO remuneration paid by CEI Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

We think many shareholders would be underwhelmed with the business growth over the last three years.

However, we can't argue with the strong returns to shareholders, over the same time period. Considering this, shareholders are probably not too worried about the CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at CEI.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.

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. Thank you for reading.