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Is Chong Sing Holdings FinTech Group Limited (HKG:8207) Overpaying Its CEO?

Simply Wall St

Yew Kiat Phang became the CEO of Chong Sing Holdings FinTech Group Limited (HKG:8207) in 2014. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

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Check out our latest analysis for Chong Sing Holdings FinTech Group

How Does Yew Kiat Phang's Compensation Compare With Similar Sized Companies?

Our data indicates that Chong Sing Holdings FinTech Group Limited is worth HK$670m, and total annual CEO compensation is CN¥23m. (This figure is for the year to December 2018). That's actually a decrease on the year before. We think total compensation is more important but we note that the CEO salary is lower, at CN¥2.5m. We took a group of companies with market capitalizations below CN¥1.4b, and calculated the median CEO total compensation to be CN¥1.3m.

As you can see, Yew Kiat Phang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Chong Sing Holdings FinTech Group Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

The graphic below shows how CEO compensation at Chong Sing Holdings FinTech Group has changed from year to year.

SEHK:8207 CEO Compensation, May 22nd 2019

Is Chong Sing Holdings FinTech Group Limited Growing?

On average over the last three years, Chong Sing Holdings FinTech Group Limited has shrunk earnings per share by 44% each year (measured with a line of best fit). It saw its revenue drop -40% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. 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 Chong Sing Holdings FinTech Group Limited Been A Good Investment?

Given the total loss of 96% over three years, many shareholders in Chong Sing Holdings FinTech Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

We examined the amount Chong Sing Holdings FinTech Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Just as bad, share price gains for investors have failed to materialize, over the same period. In our opinion the CEO might be paid too generously! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Chong Sing Holdings FinTech Group.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

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. Thank you for reading.