Yahoo Finance Is Dynamic Colours Limited's (SGX:D6U) CEO Paid At A Competitive Rate?
Hock Leng Yeo is the CEO of Dynamic Colours Limited (SGX:D6U). 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. 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.
Check out our latest analysis for Dynamic Colours
How Does Hock Leng Yeo's Compensation Compare With Similar Sized Companies?
Our data indicates that Dynamic Colours Limited is worth S$38m, and total annual CEO compensation was reported as US$524k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$398k. We examined a group of similar sized companies, with market capitalizations of below S$278m. The median CEO total compensation in that group is S$472k.
So Hock Leng Yeo is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Dynamic Colours has changed over time.
Is Dynamic Colours Limited Growing?
Over the last three years Dynamic Colours Limited has shrunk its earnings per share by an average of 52% per year (measured with a line of best fit). Its revenue is down 9.5% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. 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 Dynamic Colours Limited Been A Good Investment?
Given the total loss of 18% over three years, many shareholders in Dynamic Colours Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Remuneration for Hock Leng Yeo is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Dynamic Colours shares with their own money (free access).
If you want to buy a stock that is better than Dynamic Colours, this free list of high return, low debt companies is a great place to look.
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.
