Our Take On Greatview Aseptic Packaging Company Limited's (HKG:468) CEO Salary

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Jeff Bi has been the CEO of Greatview Aseptic Packaging Company Limited (HKG:468) since 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 Greatview Aseptic Packaging

How Does Jeff Bi's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Greatview Aseptic Packaging Company Limited has a market cap of HK$3.7b, and reported total annual CEO compensation of CN¥3.3m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥2.4m. When we examined a selection of companies with market caps ranging from CN¥1.4b to CN¥5.7b, we found the median CEO total compensation was CN¥2.7m.

Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Greatview Aseptic Packaging. Talking in terms of the sector, salary represented approximately 57% of total compensation out of all the companies we analysed, while other remuneration made up 43% of the pie. So it seems like there isn't a significant difference between Greatview Aseptic Packaging and the broader market, in terms of salary allocation in the overall compensation package.

So Jeff Bi is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Greatview Aseptic Packaging has changed from year to year.

SEHK:468 CEO Compensation April 24th 2020
SEHK:468 CEO Compensation April 24th 2020

Is Greatview Aseptic Packaging Company Limited Growing?

On average over the last three years, Greatview Aseptic Packaging Company Limited has seen earnings per share (EPS) move in a favourable direction by 1.5% each year (using a line of best fit). Its revenue is up 8.6% over last year.

I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. It could be important to check this free visual depiction of what analysts expect for the future.

Has Greatview Aseptic Packaging Company Limited Been A Good Investment?

With a three year total loss of 21%, Greatview Aseptic Packaging Company Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Jeff Bi is close enough to the median pay for a CEO of a similar sized company .

The company cannot boast particularly strong per share growth. And it's hard to argue that the returns over the last three years have delighted. So suffice it to say we don't think the compensation is modest. Shifting gears from CEO pay for a second, we've picked out 2 warning signs for Greatview Aseptic Packaging that investors should be aware of in a dynamic business environment.

If you want to buy a stock that is better than Greatview Aseptic Packaging, this free list of high return, low debt companies is a great place to look.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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