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The CEO of Ten Pao Group Holdings Limited (HKG:1979) is Kwong Hung. 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.

Check out our latest analysis for Ten Pao Group Holdings

How Does Kwong Hung's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Ten Pao Group Holdings Limited has a market cap of HK$850m, and is paying total annual CEO compensation of HK$7.3m. (This figure is for the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at HK$5.3m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

Thus we can conclude that Kwong Hung receives more in total compensation than the median of a group of companies in the same market, and of similar size to Ten Pao Group 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.

You can see a visual representation of the CEO compensation at Ten Pao Group Holdings, below.

Is Ten Pao Group Holdings Limited Growing?

Ten Pao Group Holdings Limited has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 6.5% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Shareholders might be interested in this free visualization of analyst forecasts.

Has Ten Pao Group Holdings Limited Been A Good Investment?

Ten Pao Group Holdings Limited has served shareholders reasonably well, with a total return of 30% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We examined the amount Ten Pao Group Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.