The CEO of Universe Entertainment and Culture Group Company Limited (HKG:1046) is Daneil Lam. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Universe Entertainment and Culture Group

How Does Daneil Lam's Compensation Compare With Similar Sized Companies?

According to our data, Universe Entertainment and Culture Group Company Limited has a market capitalization of HK$317m, and paid its CEO total annual compensation worth HK$5.5m over the year to June 2019. Notably, the salary of HK$5.5m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.

Thus we can conclude that Daneil Lam receives more in total compensation than the median of a group of companies in the same market, and of similar size to Universe Entertainment and Culture Group Company 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.

The graphic below shows how CEO compensation at Universe Entertainment and Culture Group has changed from year to year.

Is Universe Entertainment and Culture Group Company Limited Growing?

On average over the last three years, Universe Entertainment and Culture Group Company Limited has grown earnings per share (EPS) by 75% each year (using a line of best fit). It saw its revenue drop 29% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Universe Entertainment and Culture Group Company Limited Been A Good Investment?

Universe Entertainment and Culture Group Company Limited has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

In Summary...

We compared total CEO remuneration at Universe Entertainment and Culture Group Company Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don't see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Universe Entertainment and Culture Group shares with their own money (free access).

If you want to buy a stock that is better than Universe Entertainment and Culture Group, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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