Goh Yew Lin became the CEO of G. K. Goh Holdings Limited (SGX:G41) in 2008. 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. 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 G. K. Goh Holdings
How Does Goh Yew Lin's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that G. K. Goh Holdings Limited has a market cap of S$266m, and reported total annual CEO compensation of S$1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at S$969k. We examined companies with market caps from S$136m to S$545m, and discovered that the median CEO total compensation of that group was S$829k.
That means Goh Yew Lin receives fairly typical remuneration for the CEO of a company that size. 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 a visual representation of the CEO compensation at G. K. Goh Holdings, below.
Is G. K. Goh Holdings Limited Growing?
G. K. Goh Holdings Limited has reduced its earnings per share by an average of 53% a year, over the last three years (measured with a line of best fit). In the last year, its revenue changed by just 0.6%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue is seriously uninspiring. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 G. K. Goh Holdings Limited Been A Good Investment?
G. K. Goh Holdings Limited has not done too badly by shareholders, with a total return of 8.2%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
Goh Yew Lin is paid around what is normal the leaders of comparable size companies.
We're not seeing great strides in earnings per share, and total returns were decent but not amazing in the last three years. We're not saying the CEO pay is too generous, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling G. K. Goh Holdings (free visualization of insider trades).