Pauline Ngan is the CEO of Mainland Headwear Holdings Limited (HKG:1100). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for Mainland Headwear Holdings

How Does Pauline Ngan's Compensation Compare With Similar Sized Companies?

According to our data, Mainland Headwear Holdings Limited has a market capitalization of HK$280m, and paid its CEO total annual compensation worth HK$5.5m over the year to December 2019. That's below the compensation, last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.7m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 89% of total compensation represents salary and 11% is other remuneration. Non-salary compensation represents a greater slice of the remuneration pie for Mainland Headwear Holdings, in sharp contrast to the overall sector.

It would therefore appear that Mainland Headwear Holdings Limited pays Pauline Ngan 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. The graphic below shows how CEO compensation at Mainland Headwear Holdings has changed from year to year.

Is Mainland Headwear Holdings Limited Growing?

Mainland Headwear Holdings Limited has reduced its earnings per share by an average of 7.5% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 29% over the last year.

As investors, we are a bit wary of companies that have lower earnings per share, over three years. But in contrast the revenue growth is strong, suggesting future potential for earnings growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.