In This Article:
In 2015 Kam-Hung Shum was appointed CEO of Herald Holdings Limited (HKG:114). 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Herald Holdings
How Does Kam-Hung Shum’s Compensation Compare With Similar Sized Companies?
Our data indicates that Herald Holdings Limited is worth HK$508m, and total annual CEO compensation is HK$3.5m. That’s less than last year. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.7m.
It would therefore appear that Herald Holdings Limited pays Kam-Hung Shum more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration 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 Herald Holdings has changed from year to year.
Is Herald Holdings Limited Growing?
On average over the last three years, Herald Holdings Limited has shrunk earnings per share by 38% each year. It achieved revenue growth of 16% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And while it’s good to see some good revenue growth recently, the growth isn’t really fast enough for me to put aside my concerns around earnings. So given this relatively weak performance, shareholders would probably not want to see high compensation 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 Herald Holdings Limited Been A Good Investment?
With a total shareholder return of 7.6% over three years, Herald Holdings Limited has done okay by shareholders. 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 examined the amount Herald Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.