Hong Lim Teo became the CEO of Roxy-Pacific Holdings Limited (SGX:E8Z) in 1993. 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. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Check out our latest analysis for Roxy-Pacific Holdings

How Does Hong Lim Teo's Compensation Compare With Similar Sized Companies?

Our data indicates that Roxy-Pacific Holdings Limited is worth S$522m, and total annual CEO compensation is S$1.9m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at S$600k. We examined companies with market caps from S$275m to S$1.1b, and discovered that the median CEO total compensation of that group was S$461k.

Thus we can conclude that Hong Lim Teo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Roxy-Pacific Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see a visual representation of the CEO compensation at Roxy-Pacific Holdings, below.

Is Roxy-Pacific Holdings Limited Growing?

On average over the last three years, Roxy-Pacific Holdings Limited has shrunk earnings per share by 32% each year (measured with a line of best fit). In the last year, its revenue is down -23%.

Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has Roxy-Pacific Holdings Limited Been A Good Investment?

Since shareholders would have lost about 1.4% over three years, some Roxy-Pacific Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Roxy-Pacific Holdings Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Roxy-Pacific Holdings (free visualization of insider trades).

If you want to buy a stock that is better than Roxy-Pacific Holdings, this free list of high return, low debt companies is a great place to look.

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.