In 2010 Lian Pek was appointed CEO of Tiong Seng Holdings Limited (SGX:BFI). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Tiong Seng Holdings

How Does Lian Pek’s Compensation Compare With Similar Sized Companies?

Our data indicates that Tiong Seng Holdings Limited is worth S$120m, and total annual CEO compensation is S$1.9m. (This is based on the year to 2016). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at S$568k. We took a group of companies with market capitalizations below S$271m, and calculated the median CEO compensation to be S$411k.

Thus we can conclude that Lian Pek receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tiong Seng Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Tiong Seng Holdings has changed from year to year.

Is Tiong Seng Holdings Limited Growing?

On average over the last three years, Tiong Seng Holdings Limited has grown earnings per share (EPS) by 49% each year (using a line of best fit). In the last year, its revenue is down -36%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.

Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Tiong Seng Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 41% over three years, Tiong Seng Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary…

We compared the total CEO remuneration paid by Tiong Seng Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tiong Seng Holdings (free visualization of insider trades).

Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings and revenue.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.