In 2011 Wa Pan Chong was appointed CEO of Come Sure Group (Holdings) Limited (HKG:794). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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.
How Does Wa Pan Chong's Compensation Compare With Similar Sized Companies?
Our data indicates that Come Sure Group (Holdings) Limited is worth HK$207m, and total annual CEO compensation is HK$4.9m. (This figure is for the year to March 2019). That's a notable increase of 103% on last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. 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$1.9m.
Thus we can conclude that Wa Pan Chong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Come Sure Group (Holdings) Limited. However, this doesn't necessarily mean the pay 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 Come Sure Group (Holdings), below.
Is Come Sure Group (Holdings) Limited Growing?
Come Sure Group (Holdings) Limited has increased its earnings per share (EPS) by an average of 81% a year, over the last three years (using a line of best fit). Its revenue is down -11% over 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. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Come Sure Group (Holdings) Limited Been A Good Investment?
Since shareholders would have lost about 8.3% over three years, some Come Sure Group (Holdings) Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
We compared the total CEO remuneration paid by Come Sure Group (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.
However we must not forget that the EPS growth has been very strong over three years. On the other hand returns to investors over the same period have probably disappointed many. This doesn't look great when you consider CEO remuneration is up on last year. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Come Sure Group (Holdings) (free visualization of insider trades).
Important note: Come Sure Group (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.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.