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Jonathan Cheung has been the CEO of Pinestone Capital Limited (HKG:804) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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 Pinestone Capital
How Does Jonathan Cheung's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Pinestone Capital Limited has a market cap of HK$579m, and is paying total annual CEO compensation of HK$916k. (This is based on the year to December 2018). Notably, that's an increase of 263% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at HK$500k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
Most shareholders would consider it a positive that Jonathan Cheung takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Pinestone Capital, below.
Is Pinestone Capital Limited Growing?
On average over the last three years, Pinestone Capital Limited has shrunk earnings per share by 47% each year (measured with a line of best fit). It saw its revenue drop -51% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Pinestone Capital Limited Been A Good Investment?
Given the total loss of 85% over three years, many shareholders in Pinestone Capital Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It looks like Pinestone Capital Limited pays its CEO less than similar sized companies.