Wei Teck Wong has been the CEO of Soup Restaurant Group Limited (SGX:5KI) since 2016. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Soup Restaurant Group

How Does Wei Teck Wong's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Soup Restaurant Group Limited has a market cap of S$31m, and reported total annual CEO compensation of S$338k for the year to December 2019. That's less than last year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth S$335k. We took a group of companies with market capitalizations below S$283m, and calculated the median CEO total compensation to be S$510k.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Talking in terms of the sector, salary represented approximately 55% of total compensation out of all the companies we analysed, while other remuneration made up 45% of the pie. Soup Restaurant Group has gone down a largely traditional route, paying Wei Teck Wong a high salary, giving it preference as a compensation method to non-salary benefits.

Most shareholders would consider it a positive that Wei Teck Wong takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. 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 Soup Restaurant Group has changed over time.

Is Soup Restaurant Group Limited Growing?

Soup Restaurant Group Limited has seen earnings per share (EPS) move positively by an average of 8.9% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 1.2%.

I would argue that the lack of revenue growth in the last year is less than ideal, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Soup Restaurant Group Limited Been A Good Investment?

With a three year total loss of 36%, Soup Restaurant Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

It looks like Soup Restaurant Group Limited pays its CEO less than similar sized companies.

Wei Teck Wong is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. On another note, Soup Restaurant Group has 4 warning signs (and 1 which can't be ignored) we think you should know about.

Important note: Soup Restaurant Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Thank you for reading.