In This Article:
Alvin Hon has been the CEO of Willas-Array Electronics (Holdings) Limited (SGX:BDR) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Willas-Array Electronics (Holdings)
How Does Alvin Hon's Compensation Compare With Similar Sized Companies?
Our data indicates that Willas-Array Electronics (Holdings) Limited is worth S$38m, and total annual CEO compensation was reported as HK$2.0m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.7m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$2.8m.
Most shareholders would consider it a positive that Alvin Hon takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Willas-Array Electronics (Holdings) has changed over time.
Is Willas-Array Electronics (Holdings) Limited Growing?
Over the last three years Willas-Array Electronics (Holdings) Limited has shrunk its earnings per share by an average of 43% per year (measured with a line of best fit). It saw its revenue drop 26% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Willas-Array Electronics (Holdings) Limited Been A Good Investment?
Willas-Array Electronics (Holdings) Limited has generated a total shareholder return of 1.3% over three years, so most shareholders wouldn't be too disappointed. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
It appears that Willas-Array Electronics (Holdings) Limited remunerates its CEO below most similar sized companies.