Key Insights

• ASL Marine Holdings' Annual General Meeting to take place on 19th of December
• Total pay for CEO Kok Tian Ang includes S$290.4k salary
• The overall pay is comparable to the industry average
• Over the past three years, ASL Marine Holdings' EPS grew by 88% and over the past three years, the total shareholder return was 5.1%

Under the guidance of CEO Kok Tian Ang, ASL Marine Holdings Ltd. (SGX:A04) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 19th of December. Based on our analysis of the data below, we think CEO compensation seems reasonable for now.

Comparing ASL Marine Holdings Ltd.'s CEO Compensation With The Industry

At the time of writing, our data shows that ASL Marine Holdings Ltd. has a market capitalization of S$61m, and reported total annual CEO compensation of S$440k for the year to June 2024. That's a notable increase of 43% on last year. In particular, the salary of S$290.4k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Singaporean Machinery industry with market capitalizations below S$269m, reported a median total CEO compensation of S$557k. This suggests that ASL Marine Holdings remunerates its CEO largely in line with the industry average. Furthermore, Kok Tian Ang directly owns S$11m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 66% of total compensation represents salary, while the remainder of 34% is other remuneration. Although there is a difference in how total compensation is set, ASL Marine Holdings more or less reflects the market in terms of setting the salary. 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.

ASL Marine Holdings Ltd.'s Growth

Over the past three years, ASL Marine Holdings Ltd. has seen its earnings per share (EPS) grow by 88% per year. Its revenue is down 3.2% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has ASL Marine Holdings Ltd. Been A Good Investment?

ASL Marine Holdings Ltd. has generated a total shareholder return of 5.1% over three years, so most shareholders wouldn't be too disappointed. Although, there's always room to improve. As a result, investors in the company might be reluctant about agreeing to increase CEO pay in the future, before seeing an improvement on their returns.

In Summary...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 5 warning signs (and 2 which are concerning) in ASL Marine Holdings we think you should know about.

Important note: ASL Marine Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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.