Shuk Kwan Wu has been the CEO of Goal Forward Holdings Limited (HKG:1854) since 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Goal Forward Holdings

How Does Shuk Kwan Wu's Compensation Compare With Similar Sized Companies?

Our data indicates that Goal Forward Holdings Limited is worth HK$228m, and total annual CEO compensation was reported as HK$882k for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$600k. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see a visual representation of the CEO compensation at Goal Forward Holdings, below.

Is Goal Forward Holdings Limited Growing?

On average over the last three years, Goal Forward Holdings Limited has grown earnings per share (EPS) by 31% each year (using a line of best fit). In the last year, its revenue changed by just 1.0%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Goal Forward Holdings Limited Been A Good Investment?

Goal Forward Holdings Limited has not done too badly by shareholders, with a total return of 0.6%, 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...

It looks like Goal Forward Holdings Limited pays its CEO less than similar sized companies.

Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest Shuk Kwan Wu is overcompensated. It's great to see a company that pays its CEO reasonably, even while growing. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Goal Forward Holdings (free visualization of insider trades).

Important note: Goal Forward Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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