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Does E Lighting Group Holdings Limited's (HKG:8222) CEO Pay Reflect Performance?

Simply Wall St

The CEO of E Lighting Group Holdings Limited (HKG:8222) is Raymond Hui. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.

View our latest analysis for E Lighting Group Holdings

How Does Raymond Hui's Compensation Compare With Similar Sized Companies?

According to our data, E Lighting Group Holdings Limited has a market capitalization of HK$26m, and paid its CEO total annual compensation worth HK$2.3m over the year to March 2019. Notably, the salary of HK$2.3m is the vast majority of the CEO compensation. 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$1.8m.

So Raymond Hui receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at E Lighting Group Holdings, below.

SEHK:8222 CEO Compensation, January 16th 2020

Is E Lighting Group Holdings Limited Growing?

Over the last three years E Lighting Group Holdings Limited has shrunk its earnings per share by an average of 26% per year (measured with a line of best fit). In the last year, its revenue is down 11%.

Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 E Lighting Group Holdings Limited Been A Good Investment?

Given the total loss of 83% over three years, many shareholders in E Lighting Group 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.

In Summary...

Remuneration for Raymond Hui is close enough to the median pay for a CEO of a similar sized company .

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying E Lighting Group Holdings shares with their own money (free access).

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.

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.

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. Thank you for reading.