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Sum Tai Hui is the CEO of Hop Fung Group Holdings Limited (HKG:2320). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Hop Fung Group Holdings

How Does Sum Tai Hui's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Hop Fung Group Holdings Limited has a market cap of HK$363m, and is paying total annual CEO compensation of HK$20m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at HK$5.3m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.5m.

Thus we can conclude that Sum Tai Hui receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hop Fung Group Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Hop Fung Group Holdings has changed from year to year.

Is Hop Fung Group Holdings Limited Growing?

On average over the last three years, Hop Fung Group Holdings Limited has grown earnings per share (EPS) by 15% each year (using a line of best fit). In the last year, its revenue is down -6.5%.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Hop Fung Group Holdings Limited Been A Good Investment?

Since shareholders would have lost about 9.5% over three years, some Hop Fung Group Holdings Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at Hop Fung Group Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.