How Much Did CMON Limited's (HKG:1792) CEO Pocket Last Year?

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Chern Ann Ng became the CEO of CMON Limited (HKG:1792) in 2016. 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 method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for CMON

How Does Chern Ann Ng's Compensation Compare With Similar Sized Companies?

Our data indicates that CMON Limited is worth HK$190m, and total annual CEO compensation was reported as US$216k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth US$207k. We took a group of companies with market capitalizations below US$200m, and calculated the median CEO total compensation to be US$226k.

That means Chern Ann Ng receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

The graphic below shows how CEO compensation at CMON has changed from year to year.

SEHK:1792 CEO Compensation, January 1st 2020
SEHK:1792 CEO Compensation, January 1st 2020

Is CMON Limited Growing?

CMON Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 46%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has CMON Limited Been A Good Investment?

Since shareholders would have lost about 47% over three years, some CMON Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Chern Ann Ng is paid around what is normal the leaders of comparable size companies.

We'd say the company can boast of its EPS growth, but we find the returns over the last three years to be lacking. Considering the the positives we don't think the CEO pays is too high, but it's certainly hard to argue it is too low. Shareholders may want to check for free if CMON insiders are buying or selling shares.