Does Orange Sky Golden Harvest Entertainment (Holdings) Limited’s (HKG:1132) CEO Pay Matter?
In 2011 Yimin Mao was appointed CEO of Orange Sky Golden Harvest Entertainment (Holdings) Limited (HKG:1132). 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.
See our latest analysis for Orange Sky Golden Harvest Entertainment (Holdings)
How Does Yimin Mao’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Orange Sky Golden Harvest Entertainment (Holdings) Limited has a market cap of HK$1.0b, and is paying total annual CEO compensation of HK$18m. Notably, that’s an increase of 328% over the year before. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$2m.
Thus we can conclude that Yimin Mao receives more in total compensation than the median of a group of companies in the same market, and of similar size to Orange Sky Golden Harvest Entertainment (Holdings) Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Orange Sky Golden Harvest Entertainment (Holdings) has changed from year to year.
Is Orange Sky Golden Harvest Entertainment (Holdings) Limited Growing?
Orange Sky Golden Harvest Entertainment (Holdings) Limited has increased its earnings per share (EPS) by an average of 125% a year, over the last three years It saw its revenue drop -26% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Orange Sky Golden Harvest Entertainment (Holdings) Limited Been A Good Investment?
Orange Sky Golden Harvest Entertainment (Holdings) Limited has generated a total shareholder return of 21% over three years, so most shareholders would be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by Orange Sky Golden Harvest Entertainment (Holdings) Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also think investors are doing ok, over the same time period. While it may be worth researching further, we don’t see a problem with the CEO pay, given the good EPS growth. So you may want to check if insiders are buying Orange Sky Golden Harvest Entertainment (Holdings) Limited shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
