In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Yimin Mao became the CEO of Orange Sky Golden Harvest Entertainment (Holdings) Limited (HKG:1132) in 2011. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Orange Sky Golden Harvest Entertainment (Holdings)
How Does Yimin Mao's Compensation Compare With Similar Sized Companies?
According to our data, Orange Sky Golden Harvest Entertainment (Holdings) Limited has a market capitalization of HK$826m, and pays its CEO total annual compensation worth HK$18m. (This number is for the twelve months until December 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$2.5m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.5m.
As you can see, Yimin Mao is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Orange Sky Golden Harvest Entertainment (Holdings) Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Orange Sky Golden Harvest Entertainment (Holdings) has changed over time.
Is Orange Sky Golden Harvest Entertainment (Holdings) Limited Growing?
Orange Sky Golden Harvest Entertainment (Holdings) Limited has increased its earnings per share (EPS) by an average of 89% a year, over the last three years (using a line of best fit). Its revenue is up 4.4% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Orange Sky Golden Harvest Entertainment (Holdings) Limited Been A Good Investment?
Orange Sky Golden Harvest Entertainment (Holdings) Limited has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.