Is N1 Holdings Limited (ASX:N1H) Overpaying Its CEO?
Ren Hor Wong is the CEO of N1 Holdings Limited (ASX:N1H). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
See our latest analysis for N1 Holdings
How Does Ren Hor Wong's Compensation Compare With Similar Sized Companies?
Our data indicates that N1 Holdings Limited is worth AU$3.7m, and total annual CEO compensation was reported as AU$413k for the year to June 2019. That's a modest increase of 1.9% on the prior year year. We think total compensation is more important but we note that the CEO salary is lower, at AU$375k. We took a group of companies with market capitalizations below AU$297m, and calculated the median CEO total compensation to be AU$382k.
So Ren Hor Wong 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.
The graphic below shows how CEO compensation at N1 Holdings has changed from year to year.
Is N1 Holdings Limited Growing?
On average over the last three years, N1 Holdings Limited has grown earnings per share (EPS) by 1.2% each year (using a line of best fit). Its revenue is up 12% over last year.
I would argue that the modest growth in revenue is a notable positive. And the modest growth in earnings per share isn't bad, either. Although we'll stop short of calling the stock a top performer, we think the company has potential. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has N1 Holdings Limited Been A Good Investment?
Since shareholders would have lost about 75% over three years, some N1 Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Ren Hor Wong is paid around the same as most CEOs of similar size companies.
The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shareholders may want to check for free if N1 Holdings 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.
