In This Article:
Key Insights
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InnoTek will host its Annual General Meeting on 26th of April
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CEO Yiliang Lou's total compensation includes salary of S$514.5k
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Total compensation is similar to the industry average
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Over the past three years, InnoTek's EPS fell by 31% and over the past three years, the total loss to shareholders 41%
The results at InnoTek Limited (SGX:M14) have been quite disappointing recently and CEO Yiliang Lou bears some responsibility for this. At the upcoming AGM on 26th of April, shareholders can hear from the board including their plans for turning around performance. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. From our analysis, we think CEO compensation may need a review in light of the recent performance.
View our latest analysis for InnoTek
Comparing InnoTek Limited's CEO Compensation With The Industry
According to our data, InnoTek Limited has a market capitalization of S$120m, and paid its CEO total annual compensation worth S$559k over the year to December 2023. That's mostly flat as compared to the prior year's compensation. In particular, the salary of S$514.5k, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the Singaporean Machinery industry with market capitalizations below S$272m, reported a median total CEO compensation of S$559k. This suggests that InnoTek remunerates its CEO largely in line with the industry average. Moreover, Yiliang Lou also holds S$16m worth of InnoTek stock directly under their own name, which reveals to us that they have a significant personal stake in the company.
| Component | 2023 | 2022 | Proportion (2023) |
| Salary | S$514k | S$458k | 92% |
| Other | S$45k | S$114k | 8% |
| Total Compensation | S$559k | S$572k | 100% |
On an industry level, around 85% of total compensation represents salary and 15% is other remuneration. Although there is a difference in how total compensation is set, InnoTek more or less reflects the market in terms of setting the salary. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
A Look at InnoTek Limited's Growth Numbers
Over the last three years, InnoTek Limited has shrunk its earnings per share by 31% per year. In the last year, its revenue is up 10%.
Overall this is not a very positive result for shareholders. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for us to put aside my concerns around EPS. These factors suggest that the business performance wouldn't really justify a high pay packet 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.