Is Global Link Communications Holdings Limited's (HKG:8060) CEO Being Overpaid?

In This Article:

Yuanguang Ma has been the CEO of Global Link Communications Holdings Limited (HKG:8060) since 2014. 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 Global Link Communications Holdings

How Does Yuanguang Ma's Compensation Compare With Similar Sized Companies?

According to our data, Global Link Communications Holdings Limited has a market capitalization of HK$90m, and paid its CEO total annual compensation worth HK$1.1m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$989k. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

Most shareholders would consider it a positive that Yuanguang Ma takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

The graphic below shows how CEO compensation at Global Link Communications Holdings has changed from year to year.

SEHK:8060 CEO Compensation, January 16th 2020
SEHK:8060 CEO Compensation, January 16th 2020

Is Global Link Communications Holdings Limited Growing?

Global Link Communications Holdings Limited has increased its earnings per share (EPS) by an average of 47% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 49%.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Global Link Communications Holdings Limited Been A Good Investment?

With a three year total loss of 85%, Global Link Communications 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...

It looks like Global Link Communications Holdings Limited pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. We're not critical of the remuneration Yuanguang Ma receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. Shareholders may want to check for free if Global Link Communications Holdings insiders are buying or selling shares.