Chak Chan became the CEO of Future Bright Holdings Limited (HKG:703) in 2004. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

See our latest analysis for Future Bright Holdings

How Does Chak Chan’s Compensation Compare With Similar Sized Companies?

Our data indicates that Future Bright Holdings Limited is worth HK$562m, and total annual CEO compensation is HK$15m. That’s a notable increase of 9.8% on last year. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$2m.

Thus we can conclude that Chak Chan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Future Bright Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Future Bright Holdings has changed from year to year.

Is Future Bright Holdings Limited Growing?

Future Bright Holdings Limited has increased its earnings per share (EPS) by an average of 65% a year, over the last three years In the last year, its revenue is up 19%.

This shows that the company has improved itself over the last few years. Good news for shareholders. IThis sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.

We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Future Bright Holdings Limited Been A Good Investment?

With a total shareholder return of 2.4% over three years, Future Bright Holdings Limited has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary…

We compared total CEO remuneration at Future Bright Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. Looking at the same time period, we think that the shareholder returns are respectable. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Future Bright Holdings Limited shares with their own money (free access).