The underwhelming share price performance of Ellipsiz Ltd (SGX:BIX) in the past three years would have disappointed many shareholders. What is concerning is that despite positive EPS growth, the share price has not tracked the trend in fundamentals. These are some of the concerns that shareholders may want to bring up at the next AGM held on 25 October 2022. They could also try to influence management and firm direction through voting on resolutions such as executive remuneration and other company matters. We think shareholders might be reluctant to increase compensation for the CEO at the moment, according to our analysis below.

Check out our latest analysis for Ellipsiz

Comparing Ellipsiz Ltd's CEO Compensation With The Industry

According to our data, Ellipsiz Ltd has a market capitalization of S$49m, and paid its CEO total annual compensation worth S$852k over the year to June 2022. We note that's a small decrease of 3.4% on last year. We note that the salary portion, which stands at S$647.5k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below S$284m, reported a median total CEO compensation of S$231k. Hence, we can conclude that Kelvin Lum is remunerated higher than the industry median.

On an industry level, roughly 81% of total compensation represents salary and 19% is other remuneration. There isn't a significant difference between Ellipsiz and the broader market, in terms of salary allocation in the overall compensation package. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Ellipsiz Ltd's Growth Numbers

Ellipsiz Ltd's earnings per share (EPS) grew 63% per year over the last three years. In the last year, its revenue is up 2.0%.

This demonstrates that the company has been improving recently and is good news for the shareholders. 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 Ellipsiz Ltd Been A Good Investment?

With a three year total loss of 21% for the shareholders, Ellipsiz Ltd would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

The fact that shareholders are sitting on a loss on the value of their shares in the past few years is certainly disconcerting. A huge lag in share price growth when earnings have grown may indicate there could be other issues that are affecting the company at the moment that the market is focused on. Shareholders would be keen to know what's holding the stock back when earnings have grown. These concerns should be addressed at the upcoming AGM, where shareholders can question the board and evaluate if their judgement and decision making is still in line with their expectations.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. That's why we did our research, and identified 4 warning signs for Ellipsiz (of which 1 is a bit concerning!) that you should know about in order to have a holistic understanding of the stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.