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Tony Wu Gozali became the CEO of SP Corporation Limited (SGX:AWE) in 2010. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
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$17m, and is paying total annual CEO compensation of S$727k. (This is based on the year to December 2018). That's a notable increase of 33% on last year. We think total compensation is more important but we note that the CEO salary is lower, at S$532k. We examined a group of similar sized companies, with market capitalizations of below S$273m. The median CEO total compensation in that group is S$322k.
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?
Over the last three years SP Corporation Limited has shrunk its earnings per share by an average of 5.0% per year (measured with a line of best fit). It achieved revenue growth of 2.4% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has SP Corporation Limited Been A Good Investment?
With a total shareholder return of 25% over three years, SP Corporation Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.