In This Article:
In 2010 Boon Wee Kuah was appointed CEO of MTQ Corporation Limited (SGX:M05). First, this article will compare CEO compensation with compensation at similar sized companies. 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.
View our latest analysis for MTQ
How Does Boon Wee Kuah's Compensation Compare With Similar Sized Companies?
According to our data, MTQ Corporation Limited has a market capitalization of S$44m, and paid its CEO total annual compensation worth S$619k over the year to March 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$362k. We looked at a group of companies with market capitalizations under S$275m, and the median CEO total compensation was S$382k.
Thus we can conclude that Boon Wee Kuah receives more in total compensation than the median of a group of companies in the same market, and of similar size to MTQ Corporation Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at MTQ has changed over time.
Is MTQ Corporation Limited Growing?
MTQ Corporation Limited has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). It achieved revenue growth of 37% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has MTQ Corporation Limited Been A Good Investment?
Given the total loss of 43% over three years, many shareholders in MTQ Corporation Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We compared total CEO remuneration at MTQ Corporation Limited with the amount paid at companies with a similar market capitalization. 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 the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling MTQ (free visualization of insider trades).