Chi Lau is the CEO of Grand Ming Group Holdings Limited (HKG:1271). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Grand Ming Group Holdings

How Does Chi Lau's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Grand Ming Group Holdings Limited has a market cap of HK$3.2b, and reported total annual CEO compensation of HK$2.6m for the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$1.6b to HK$6.2b. The median total CEO compensation was HK$2.9m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Grand Ming Group Holdings stands. Speaking on an industry level, we can see that nearly 90% of total compensation represents salary, while the remainder of 9.7% is other remuneration. Grand Ming Group Holdings does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.

So Chi Lau is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. The graphic below shows how CEO compensation at Grand Ming Group Holdings has changed from year to year.

Is Grand Ming Group Holdings Limited Growing?

Over the last three years Grand Ming Group Holdings Limited has shrunk its earnings per share by an average of 21% per year (measured with a line of best fit). Its revenue is down 20% over last year.

Unfortunately, earnings per share have trended lower over the last 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 Grand Ming Group Holdings Limited Been A Good Investment?

Grand Ming Group Holdings Limited has served shareholders reasonably well, with a total return of 21% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.