Su Ge became the CEO of AMVIG Holdings Limited (HKG:2300) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
How Does Su Ge's Compensation Compare With Similar Sized Companies?
Our data indicates that AMVIG Holdings Limited is worth HK$1.7b, and total annual CEO compensation is HK$6.4m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$769k. We looked at a group of companies with market capitalizations from HK$784m to HK$3.1b, and the median CEO total compensation was HK$2.3m.
Thus we can conclude that Su Ge receives more in total compensation than the median of a group of companies in the same market, and of similar size to AMVIG Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at AMVIG Holdings, below.
Is AMVIG Holdings Limited Growing?
AMVIG Holdings Limited has increased its earnings per share (EPS) by an average of 20% a year, over the last three years (using a line of best fit). Its revenue is up 2.2% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has AMVIG Holdings Limited Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in AMVIG Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at AMVIG Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at AMVIG Holdings.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.