Does CEI Limited's (SGX:AVV) CEO Pay Reflect Performance?

Ka Huat Tan is the CEO of CEI Limited (SGX:AVV). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for CEI

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

According to our data, CEI Limited has a market capitalization of S$76m, and paid its CEO total annual compensation worth S$549k over the year to December 2019. That's less than last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$300k. We looked at a group of companies with market capitalizations under S$285m, and the median CEO total compensation was S$489k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 42% of total compensation represents salary and 58% is other remuneration. CEI is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation

So Ka Huat Tan is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see a visual representation of the CEO compensation at CEI, below.

SGX:AVV CEO Compensation May 18th 2020
SGX:AVV CEO Compensation May 18th 2020

Is CEI Limited Growing?

On average over the last three years, CEI Limited has shrunk earnings per share by 3.3% each year (measured with a line of best fit). It saw its revenue drop 1.1% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has CEI Limited Been A Good Investment?

CEI Limited has generated a total shareholder return of 9.7% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

Remuneration for Ka Huat Tan is close enough to the median pay for a CEO of a similar sized company .