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The CEO of Guru Online (Holdings) Limited (HKG:8121) is Alan Yip. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Guru Online (Holdings)
How Does Alan Yip's Compensation Compare With Similar Sized Companies?
According to our data, Guru Online (Holdings) Limited has a market capitalization of HK$62m, and pays its CEO total annual compensation worth HK$7.1m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.2m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
Thus we can conclude that Alan Yip receives more in total compensation than the median of a group of companies in the same market, and of similar size to Guru Online (Holdings) Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Guru Online (Holdings), below.
Is Guru Online (Holdings) Limited Growing?
On average over the last three years, Guru Online (Holdings) Limited has shrunk earnings per share by 42% each year (measured with a line of best fit). In the last year, its revenue is up 10%.
Sadly for shareholders, earnings per share are actually down, over three years. And while it's good to see some good revenue growth recently, the growth isn't really fast enough for me to put aside my concerns around earnings. These factors suggest that the business performance wouldn't really justify a high pay packet 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 Guru Online (Holdings) Limited Been A Good Investment?
Given the total loss of 80% over three years, many shareholders in Guru Online (Holdings) Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.