In This Article:
The CEO of Fulum Group Holdings Limited (HKG:1443) is Wai Yeung. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Fulum Group Holdings
How Does Wai Yeung's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Fulum Group Holdings Limited has a market cap of HK$403m, and is paying total annual CEO compensation of HK$2.6m. (This number is for the twelve months until March 2018). While we always look at total compensation first, we note that the salary component is less, at HK$2.2m. 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, Wai Yeung is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Fulum Group Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Fulum Group Holdings has changed over time.
Is Fulum Group Holdings Limited Growing?
On average over the last three years, Fulum Group Holdings Limited has shrunk earnings per share by 39% each year (measured with a line of best fit). Its revenue is down -11% 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. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Fulum Group Holdings Limited Been A Good Investment?
Given the total loss of 70% over three years, many shareholders in Fulum Group Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Fulum Group 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.