In This Article:
Benny Chong became the CEO of Auto Italia Holdings Limited (HKG:720) in 2013. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Auto Italia Holdings
How Does Benny Chong's Compensation Compare With Similar Sized Companies?
According to our data, Auto Italia Holdings Limited has a market capitalization of HK$313m, and pays its CEO total annual compensation worth HK$3.4m. (This is based on the year to December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.1m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.9m.
As you can see, Benny Chong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Auto Italia Holdings Limited is paying too much. 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 Auto Italia Holdings has changed from year to year.
Is Auto Italia Holdings Limited Growing?
Over the last three years, Auto Italia Holdings Limited has not seen its earnings per share change much, though there is a positive trend. Its revenue is down -52% over last year.
I generally like to see a little revenue growth, but the modest improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Auto Italia Holdings Limited Been A Good Investment?
Given the total loss of 62% over three years, many shareholders in Auto Italia Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Auto Italia Holdings 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.