In 2001 Feng Hsu was appointed CEO of Tomson Group Limited (HKG:258). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Tomson Group

How Does Feng Hsu's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Tomson Group Limited has a market cap of HK$3.7b, and reported total annual CEO compensation of HK$14m for the year to December 2018. Notably, the salary of HK$14m is the vast majority of the CEO compensation. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.4m.

It would therefore appear that Tomson Group Limited pays Feng Hsu 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Tomson Group has changed from year to year.

Is Tomson Group Limited Growing?

Tomson Group Limited has reduced its earnings per share by an average of 24% a year, over the last three years (measured with a line of best fit). Its revenue is down 43% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Tomson Group Limited Been A Good Investment?

Given the total loss of 1.1% over three years, many shareholders in Tomson Group Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by Tomson Group 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.

Neither earnings per share nor revenue have been growing sufficiently to impress us, over the last three years. Over the same period, investors would have come away with nothing in the way of share price gains. This analysis suggests to us that the CEO is paid too generously! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tomson Group (free visualization of insider trades).