Yahoo Finance Shareholders May Be More Conservative With Nippecraft Limited's (Catalist:N32) CEO Compensation For Now
Key Insights
Nippecraft's Annual General Meeting to take place on 30th of April
CEO Shahrazz Raja Hayat's total compensation includes salary of US$233.4k
Total compensation is 333% above industry average
Nippecraft's EPS grew by 184% over the past three years while total shareholder return over the past three years was 47%
Performance at Nippecraft Limited (Catalist:N32) has been reasonably good and CEO Shahrazz Raja Hayat has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 30th of April. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
View our latest analysis for Nippecraft
How Does Total Compensation For Shahrazz Raja Hayat Compare With Other Companies In The Industry?
According to our data, Nippecraft Limited has a market capitalization of S$20m, and paid its CEO total annual compensation worth US$233k over the year to December 2023. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth US$233k.
For comparison, other companies in the Singapore Trade Distributors industry with market capitalizations below S$273m, reported a median total CEO compensation of US$54k. Hence, we can conclude that Shahrazz Raja Hayat is remunerated higher than the industry median.
Component | 2023 | 2021 | Proportion (2023) |
Salary | US$233k | US$204k | 100% |
Other | - | US$33k | - |
Total Compensation | US$233k | US$238k | 100% |
Speaking on an industry level, nearly 93% of total compensation represents salary, while the remainder of 7% is other remuneration. At the company level, Nippecraft pays Shahrazz Raja Hayat solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Nippecraft Limited's Growth Numbers
Nippecraft Limited's earnings per share (EPS) grew 184% per year over the last three years. In the last year, its revenue is down 14%.
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. 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 Nippecraft Limited Been A Good Investment?
Most shareholders would probably be pleased with Nippecraft Limited for providing a total return of 47% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Nippecraft rewards its CEO solely through a salary, ignoring non-salary benefits completely. Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 2 warning signs for Nippecraft that investors should be aware of in a dynamic business environment.
Important note: Nippecraft 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.
