In 1975 Mohamed Salleh Marican was appointed CEO of Second Chance Properties Ltd (SGX:528). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Second Chance Properties
How Does Mohamed Salleh Marican's Compensation Compare With Similar Sized Companies?
According to our data, Second Chance Properties Ltd has a market capitalization of S$177m, and paid its CEO total annual compensation worth S$627k over the year to August 2019. We think total compensation is more important but we note that the CEO salary is lower, at S$173k. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined a group of similar sized companies, with market capitalizations of below S$270m. The median CEO total compensation in that group is S$492k.
So Mohamed Salleh Marican receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see, below, how CEO compensation at Second Chance Properties has changed over time.
Is Second Chance Properties Ltd Growing?
Over the last three years Second Chance Properties Ltd has shrunk its earnings per share by an average of 11% per year (measured with a line of best fit). Its revenue is down 4.1% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Second Chance Properties Ltd Been A Good Investment?
Second Chance Properties Ltd has generated a total shareholder return of 7.4% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Mohamed Salleh Marican is paid around what is normal the leaders of comparable size companies.