In This Article:
In 2011 Ping Hou was appointed CEO of Goldpac Group Limited (HKG:3315). 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. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Goldpac Group
How Does Ping Hou's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Goldpac Group Limited has a market cap of HK$1.4b, and reported total annual CEO compensation of CN¥5.2m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥2.4m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥699m to CN¥2.8b. The median total CEO compensation was CN¥2.0m.
It would therefore appear that Goldpac Group Limited pays Ping Hou 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Goldpac Group, below.
Is Goldpac Group Limited Growing?
On average over the last three years, Goldpac Group Limited has shrunk earnings per share by 7.0% each year (measured with a line of best fit). In the last year, its revenue is up 6.6%.
Unfortunately, earnings per share have trended lower over the last three years. The modest increase in revenue in the last year isn't enough to make me overlook the disappointing change in earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Goldpac Group Limited Been A Good Investment?
Goldpac Group Limited has not done too badly by shareholders, with a total return of 0.8%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Goldpac Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.