How Much is Hotel Grand Central Limited’s (SGX:H18) CEO Getting Paid?
Eng Tan is the CEO of Hotel Grand Central Limited (SGX:H18). 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Hotel Grand Central
How Does Eng Tan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Hotel Grand Central Limited has a market cap of S$981m, and is paying total annual CEO compensation of S$553k. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at S$240k. When we examined a selection of companies with market caps ranging from S$543m to S$2.2b, we found the median CEO compensation was S$49k.
It would therefore appear that Hotel Grand Central Limited pays Eng Tan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Hotel Grand Central has changed over time.
Is Hotel Grand Central Limited Growing?
Over the last three years Hotel Grand Central Limited has shrunk its earnings per share by an average of 15% per year (measured with a line of best fit). In the last year, its revenue changed by just -0.7%.
Sadly for shareholders, earnings per share are actually down, 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. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Hotel Grand Central Limited Been A Good Investment?
Hotel Grand Central Limited has served shareholders reasonably well, with a total return of 29% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
We examined the amount Hotel Grand Central Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
While shareholder returns are acceptable, they don’t delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! Shareholders may want to check for free if Hotel Grand Central insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
