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Is Elife Holdings Limited's (HKG:223) CEO Paid At A Competitive Rate?

Simply Wall St

Sui Keung Chiu became the CEO of Elife Holdings Limited (HKG:223) in 2009. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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.

View our latest analysis for Elife Holdings

How Does Sui Keung Chiu's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Elife Holdings Limited has a market cap of HK$367m, and reported total annual CEO compensation of HK$1.6m for the year to March 2019. Notably, the salary of HK$1.5m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.

That means Sui Keung Chiu receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Elife Holdings, below.

SEHK:223 CEO Compensation, October 19th 2019

Is Elife Holdings Limited Growing?

Over the last three years Elife Holdings Limited has shrunk its earnings per share by an average of 86% per year (measured with a line of best fit). It saw its revenue drop 42% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Elife Holdings Limited Been A Good Investment?

With a three year total loss of 79%, Elife Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Remuneration for Sui Keung Chiu 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. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. So you may want to check if insiders are buying Elife 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.

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.

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. Thank you for reading.