Marvin Hung has been the CEO of Hop Hing Group Holdings Limited (HKG:47) since 2012. 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 method should give us information to assess how appropriately the company pays the CEO.
How Does Marvin Hung's Compensation Compare With Similar Sized Companies?
Our data indicates that Hop Hing Group Holdings Limited is worth HK$1.2b, and total annual CEO compensation is CN¥8.4m. (This is based on the year to December 2018). While we always look at total compensation first, we note that the salary component is less, at CN¥3.2m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.9m.
It would therefore appear that Hop Hing Group Holdings Limited pays Marvin Hung more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration 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, below, how CEO compensation at Hop Hing Group Holdings has changed over time.
Is Hop Hing Group Holdings Limited Growing?
Hop Hing Group Holdings Limited has increased its earnings per share (EPS) by an average of 4.0% a year, over the last three years (using a line of best fit). Its revenue is up 7.4% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hop Hing Group Holdings Limited Been A Good Investment?
With a total shareholder return of 18% over three years, Hop Hing Group Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We compared total CEO remuneration at Hop Hing Group Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. In conclusion we think the company should definitely focus on improving the business before awarding any large pay rises. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Hop Hing Group Holdings (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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