Is Soup Restaurant Group Limited (SGX:5KI) Excessively Paying Its CEO?
Wei Teck Wong has been the CEO of Soup Restaurant Group Limited (SGX:5KI) since 2016. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
View our latest analysis for Soup Restaurant Group
How Does Wei Teck Wong's Compensation Compare With Similar Sized Companies?
Our data indicates that Soup Restaurant Group Limited is worth S$42m, and total annual CEO compensation was reported as S$442k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at S$318k. We looked at a group of companies with market capitalizations under S$274m, and the median CEO total compensation was S$341k.
So Wei Teck Wong is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Soup Restaurant Group has changed from year to year.
Is Soup Restaurant Group Limited Growing?
Over the last three years Soup Restaurant Group Limited has grown its earnings per share (EPS) by an average of 21% per year (using a line of best fit). In the last year, its revenue is up 1.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 Soup Restaurant Group Limited Been A Good Investment?
Since shareholders would have lost about 21% over three years, some Soup Restaurant Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Wei Teck Wong is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Soup Restaurant Group shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
