Johnny Liu has been the CEO of Dutech Holdings Limited (SGX:CZ4) since 2007. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for Dutech Holdings
How Does Johnny Liu's Compensation Compare With Similar Sized Companies?
Our data indicates that Dutech Holdings Limited is worth S$84m, and total annual CEO compensation was reported as S$332k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at S$139k. We looked at a group of companies with market capitalizations under S$283m, and the median CEO total compensation was S$510k.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 42% of total compensation represents salary, while the remainder of 58% is other remuneration. Dutech Holdings does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
At first glance this seems like a real positive for shareholders, since Johnny Liu is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see, below, how CEO compensation at Dutech Holdings has changed over time.
Is Dutech Holdings Limited Growing?
Dutech Holdings Limited has reduced its earnings per share by an average of 24% a year, over the last three years (measured with a line of best fit). Its revenue is up 3.2% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 Dutech Holdings Limited Been A Good Investment?
Given the total loss of 44% over three years, many shareholders in Dutech Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.