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In 2017 Dongfeng Huang was appointed CEO of Birmingham Sports Holdings Limited (HKG:2309). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Birmingham Sports Holdings
How Does Dongfeng Huang's Compensation Compare With Similar Sized Companies?
Our data indicates that Birmingham Sports Holdings Limited is worth HK$3.3b, and total annual CEO compensation was reported as HK$3.2m for the year to June 2019. That's a notable increase of 51% on last year. While we always look at total compensation first, we note that the salary component is less, at HK$2.0m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.5m.
So Dongfeng Huang is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Birmingham Sports Holdings has changed over time.
Is Birmingham Sports Holdings Limited Growing?
Birmingham Sports Holdings Limited has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). Its revenue is up 1.2% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Birmingham Sports Holdings Limited Been A Good Investment?
Since shareholders would have lost about 66% over three years, some Birmingham Sports Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Dongfeng Huang is paid around the same as most CEOs of similar size companies.
We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Birmingham Sports Holdings.