Lui Cheung became the CEO of Season Pacific Holdings Limited (HKG:1709) in 2015. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Season Pacific Holdings

How Does Lui Cheung's Compensation Compare With Similar Sized Companies?

Our data indicates that Season Pacific Holdings Limited is worth HK$539m, and total annual CEO compensation is HK$3.3m. (This number is for the twelve months until March 2019). Notably, that's an increase of 18% over the year before. While we always look at total compensation first, we note that the salary component is less, at HK$586k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.9m.

As you can see, Lui Cheung is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Season Pacific Holdings Limited is paying too much. 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 Season Pacific Holdings has changed from year to year.

Is Season Pacific Holdings Limited Growing?

On average over the last three years, Season Pacific Holdings Limited has shrunk earnings per share by 8.1% each year (measured with a line of best fit). In the last year, its revenue is down -33%.

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. 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, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Season Pacific Holdings Limited Been A Good Investment?

Given the total loss of 94% over three years, many shareholders in Season Pacific Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We examined the amount Season Pacific Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.