In This Article:
Liza Cheng is the CEO of Embry Holdings Limited (HKG:1388). First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Embry Holdings
How Does Liza Cheng's Compensation Compare With Similar Sized Companies?
According to our data, Embry Holdings Limited has a market capitalization of HK$693m, and pays its CEO total annual compensation worth HK$5.0m. (This number is for the twelve months until December 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.9m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.9m.
It would therefore appear that Embry Holdings Limited pays Liza Cheng 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. 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 Embry Holdings has changed over time.
Is Embry Holdings Limited Growing?
Over the last three years Embry Holdings Limited has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It saw its revenue drop -8.5% over the last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Embry Holdings Limited Been A Good Investment?
Since shareholders would have lost about 49% over three years, some Embry Holdings 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...
We compared the total CEO remuneration paid by Embry Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying Embry Holdings shares with their own money (free access).