Charles Choi became the CEO of SG Group Holdings Limited (HKG:1657) in 2016. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for SG Group Holdings

How Does Charles Choi's Compensation Compare With Similar Sized Companies?

According to our data, SG Group Holdings Limited has a market capitalization of HK$179m, and paid its CEO total annual compensation worth HK$1.0m over the year to April 2019. Notably, the salary of HK$1.0m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.

Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where SG Group Holdings stands. Speaking on an industry level, we can see that nearly 91% of total compensation represents salary, while the remainder of 8.6% is other remuneration. SG Group Holdings has gone down a largely traditional route, paying Charles Choi a high salary, giving it preference as a compensation method to non-salary benefits.

Most shareholders would consider it a positive that Charles Choi takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. The graphic below shows how CEO compensation at SG Group Holdings has changed from year to year.

Is SG Group Holdings Limited Growing?

On average over the last three years, SG Group Holdings Limited has seen earnings per share (EPS) move in a favourable direction by 25% each year (using a line of best fit). In the last year, its revenue is up 49%.

This shows that the company has improved itself over the last few years. Good news for shareholders. 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 you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has SG Group Holdings Limited Been A Good Investment?

Given the total loss of 3.4% over three years, many shareholders in SG Group Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.