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Is Global International Credit Group Limited's (HKG:1669) CEO Pay Justified?

Simply Wall St

The CEO of Global International Credit Group Limited (HKG:1669) is Nicole Wang. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

See our latest analysis for Global International Credit Group

How Does Nicole Wang's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Global International Credit Group Limited has a market cap of HK$260m, and reported total annual CEO compensation of HK$618k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

You can see, below, how CEO compensation at Global International Credit Group has changed over time.

SEHK:1669 CEO Compensation, October 4th 2019

Is Global International Credit Group Limited Growing?

On average over the last three years, Global International Credit Group Limited has grown earnings per share (EPS) by 1.9% each year (using a line of best fit). In the last year, its revenue is up 31%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Global International Credit Group Limited Been A Good Investment?

Given the total loss of 42% over three years, many shareholders in Global International Credit Group Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It looks like Global International Credit Group Limited pays its CEO less than similar sized companies.

Nicole Wang is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. So while shareholders shouldn't be overly concerned about CEO compensation, they would probably like to see improved shareholder returns before seeing a pay increase. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Global International Credit Group (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.

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.