Tony Wu Gozali has been the CEO of SP Corporation Limited (SGX:AWE) since 2010. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for SP
How Does Tony Wu Gozali's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that SP Corporation Limited has a market cap of S$18m, and reported total annual CEO compensation of S$727k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$532k. We looked at a group of companies with market capitalizations under S$271m, and the median CEO total compensation was S$492k.
As you can see, Tony Wu Gozali is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean SP Corporation Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at SP has changed over time.
Is SP Corporation Limited Growing?
SP Corporation Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight decrease, according to the line of best fit. It saw its revenue drop 24% over the last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has SP Corporation Limited Been A Good Investment?
SP Corporation Limited has generated a total shareholder return of 5.2% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared total CEO remuneration at SP Corporation Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.