In This Article:
Dongyi Hua became the CEO of Frontier Services Group Limited (HKG:500) in 2017. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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.
Check out our latest analysis for Frontier Services Group
How Does Dongyi Hua's Compensation Compare With Similar Sized Companies?
Our data indicates that Frontier Services Group Limited is worth HK$1.7b, and total annual CEO compensation was reported as HK$19m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$5.6m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total 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 Frontier Services Group Limited pays Dongyi Hua 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 better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Frontier Services Group has changed from year to year.
Is Frontier Services Group Limited Growing?
Over the last three years Frontier Services Group Limited has grown its earnings per share (EPS) by an average of 24% per year (using a line of best fit). It achieved revenue growth of 15% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Frontier Services Group Limited Been A Good Investment?
Since shareholders would have lost about 36% over three years, some Frontier Services Group Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount Frontier Services 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.