Is Thakral Corporation Ltd's (SGX:AWI) CEO Paid Enough Relative To Peers?

In This Article:

In 2016 Bethal Thakral was appointed CEO of Thakral Corporation Ltd (SGX:AWI). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Thakral

How Does Bethal Thakral's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Thakral Corporation Ltd has a market cap of S$62m, and reported total annual CEO compensation of S$803k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at S$273k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We took a group of companies with market capitalizations below S$270m, and calculated the median CEO total compensation to be S$465k.

As you can see, Bethal Thakral is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Thakral Corporation Ltd is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Thakral has changed over time.

SGX:AWI CEO Compensation, January 24th 2020
SGX:AWI CEO Compensation, January 24th 2020

Is Thakral Corporation Ltd Growing?

On average over the last three years, Thakral Corporation Ltd has grown earnings per share (EPS) by 12% each year (using a line of best fit). Its revenue is down 31% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Thakral Corporation Ltd Been A Good Investment?

Most shareholders would probably be pleased with Thakral Corporation Ltd for providing a total return of 187% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We examined the amount Thakral Corporation Ltd pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.