In This Article:
Chi Yuen Chan became the CEO of Hong Kong ChaoShang Group Limited (HKG:2322) in 2011. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Hong Kong ChaoShang Group
How Does Chi Yuen Chan's Compensation Compare With Similar Sized Companies?
Our data indicates that Hong Kong ChaoShang Group Limited is worth HK$1.5b, and total annual CEO compensation was reported as HK$3.7m for the year to March 2019. That's just a smallish increase of 0.03% on last year. Notably, the salary of HK$3.7m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from HK$784m to HK$3.1b, and the median CEO total compensation was HK$2.2m.
It would therefore appear that Hong Kong ChaoShang Group Limited pays Chi Yuen Chan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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, below, how CEO compensation at Hong Kong ChaoShang Group has changed over time.
Is Hong Kong ChaoShang Group Limited Growing?
Over the last three years Hong Kong ChaoShang Group Limited has shrunk its earnings per share by an average of 5.1% per year (measured with a line of best fit). It saw its revenue drop 77% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hong Kong ChaoShang Group Limited Been A Good Investment?
With a three year total loss of 58%, Hong Kong ChaoShang Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Hong Kong ChaoShang Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.