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Is D&G Technology Holding Company Limited (HKG:1301) Overpaying Its CEO?

In This Article:

The CEO of D&G Technology Holding Company Limited (HKG:1301) is Glendy Choi. First, this article will compare CEO compensation with compensation at similar sized companies. 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 D&G Technology Holding

How Does Glendy Choi's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that D&G Technology Holding Company Limited has a market cap of HK$908m, and is paying total annual CEO compensation of CN¥2.1m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥1.9m. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.8m.

So Glendy Choi is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see, below, how CEO compensation at D&G Technology Holding has changed over time.

SEHK:1301 CEO Compensation, September 16th 2019
SEHK:1301 CEO Compensation, September 16th 2019

Is D&G Technology Holding Company Limited Growing?

Over the last three years D&G Technology Holding Company Limited has shrunk its earnings per share by an average of 60% per year (measured with a line of best fit). In the last year, its revenue is down -5.3%.

Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has D&G Technology Holding Company Limited Been A Good Investment?

I think that the total shareholder return of 46%, over three years, would leave most D&G Technology Holding Company Limited shareholders smiling. 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...

Glendy Choi is paid around the same as most CEOs of similar size companies.

We feel that earnings per share have been a bit disappointing, but it's nice to see positive shareholder returns over the last three years. So we can't see a reason to suggest the pay is inappropriate. Shareholders may want to check for free if D&G Technology Holding insiders are buying or selling shares.