In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
In 2011 Ping Hou was appointed CEO of Goldpac Group Limited (HKG:3315). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Goldpac Group
How Does Ping Hou's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Goldpac Group Limited has a market cap of HK$1.7b, and is paying total annual CEO compensation of CN¥5.2m. (This figure is for the year to December 2018). That's less than last year. We think total compensation is more important but we note that the CEO salary is lower, at CN¥2.4m. We examined companies with market caps from CN¥690m to CN¥2.8b, and discovered that the median CEO total compensation of that group was CN¥1.8m.
As you can see, Ping Hou is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Goldpac Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Goldpac Group has changed over time.
Is Goldpac Group Limited Growing?
Over the last three years Goldpac Group Limited has shrunk its earnings per share by an average of 12% per year (measured with a line of best fit). In the last year, its revenue changed by just 0.7%.
Unfortunately, earnings per share have trended lower over the last three years. And the flat revenue hardly impresses. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Goldpac Group Limited Been A Good Investment?
Goldpac Group Limited has generated a total shareholder return of 3.7% over three years, so most shareholders wouldn't be too disappointed. 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 compared the total CEO remuneration paid by Goldpac Group Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.