Key Insights

• OKH Global's Annual General Meeting to take place on 25th of October
• CEO Wai Han Lock's total compensation includes salary of S$400.0k
• Total compensation is similar to the industry average
• Over the past three years, OKH Global's EPS fell by 0.09% and over the past three years, the total loss to shareholders 43%

OKH Global Ltd. (SGX:S3N) has not performed well recently and CEO Wai Han Lock will probably need to up their game. Shareholders can take the chance to hold the board and management accountable for the unsatisfactory performance at the next AGM on 25th of October. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. The data we present below explains why we think CEO compensation is not consistent with recent performance.

How Does Total Compensation For Wai Han Lock Compare With Other Companies In The Industry?

Our data indicates that OKH Global Ltd. has a market capitalization of S$14m, and total annual CEO compensation was reported as S$545k for the year to June 2024. Notably, that's an increase of 13% over the year before. In particular, the salary of S$400.0k, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the Singaporean Real Estate industry with market capitalizations below S$263m, reported a median total CEO compensation of S$647k. From this we gather that Wai Han Lock is paid around the median for CEOs in the industry.

Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. According to our research, OKH Global has allocated a higher percentage of pay to salary in comparison to the wider industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

OKH Global Ltd.'s Growth

Over the last three years, OKH Global Ltd. has not seen its earnings per share change much, though they have deteriorated slightly. It saw its revenue drop 25% over the last year.

The lack of EPS growth is certainly uninspiring. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 OKH Global Ltd. Been A Good Investment?

The return of -43% over three years would not have pleased OKH Global Ltd. shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, the board will get the chance to explain the steps it plans to take to improve business performance.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 which are a bit unpleasant) in OKH Global we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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.