In This Article:
Peter Lau became the CEO of Giordano International Limited (HKG:709) in 1994. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Giordano International
How Does Peter Lau's Compensation Compare With Similar Sized Companies?
Our data indicates that Giordano International Limited is worth HK$3.1b, and total annual CEO compensation was reported as HK$21m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$3.6m. 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 examined companies with market caps from HK$1.6b to HK$6.2b, and discovered that the median CEO total compensation of that group was HK$2.6m.
As you can see, Peter Lau is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Giordano International Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Giordano International has changed over time.
Is Giordano International Limited Growing?
Giordano International Limited saw earnings per share stay pretty flat over the last three years, albeit with a slight positive trend. In the last year, its revenue is down 8.2%.
I would prefer it if there was revenue growth, but I'm happy with the modest EPS growth. 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. You might want to check this free visual report on analyst forecasts for future earnings.
Has Giordano International Limited Been A Good Investment?
With a three year total loss of 40%, Giordano International Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared the total CEO remuneration paid by Giordano International Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.