Tak Pang became the CEO of Golik Holdings Limited (HKG:1118) in 1996. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Golik Holdings

How Does Tak Pang's Compensation Compare With Similar Sized Companies?

According to our data, Golik Holdings Limited has a market capitalization of HK$327m, and paid its CEO total annual compensation worth HK$7.3m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$5.9m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.

Thus we can conclude that Tak Pang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Golik Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

The graphic below shows how CEO compensation at Golik Holdings has changed from year to year.

Is Golik Holdings Limited Growing?

Golik Holdings Limited has reduced its earnings per share by an average of 108% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down 12%.

Unfortunately, earnings per share have trended lower over the last 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. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Golik Holdings Limited Been A Good Investment?

With a three year total loss of 31%, Golik Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We compared the total CEO remuneration paid by Golik Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.