In This Article:
Pak Cheong Lam became the CEO of One Media Group Limited (HKG:426) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for One Media Group
How Does Pak Cheong Lam's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that One Media Group Limited has a market cap of HK$170m, and reported total annual CEO compensation of HK$4.1m for the year to March 2019. We note that's an increase of 94% above last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.9m.
As you can see, Pak Cheong Lam is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean One Media Group 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 One Media Group has changed over time.
Is One Media Group Limited Growing?
On average over the last three years, One Media Group Limited has grown earnings per share (EPS) by 37% each year (using a line of best fit). Its revenue is down 5.8% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has One Media Group Limited Been A Good Investment?
With a three year total loss of 74%, One Media Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at One Media Group Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying One Media Group shares with their own money (free access).