The CEO of Grand Ming Group Holdings Limited (HKG:1271) is Chi Lau. 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.
How Does Chi Lau's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Grand Ming Group Holdings Limited has a market cap of HK$3.4b, and is paying total annual CEO compensation of HK$2.6m. (This figure is for the year to March 2019). That's just a smallish increase of 1.7% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.2m. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO total compensation was HK$2.7m.
So Chi Lau receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Grand Ming Group Holdings has changed from year to year.
Is Grand Ming Group Holdings Limited Growing?
On average over the last three years, Grand Ming Group Holdings Limited has shrunk earnings per share by 35% each year (measured with a line of best fit). Its revenue is down -57% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. 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 Grand Ming Group Holdings Limited Been A Good Investment?
Grand Ming Group Holdings Limited has served shareholders reasonably well, with a total return of 19% over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
Chi Lau is paid around the same as most CEOs of similar size companies.
We feel that earnings per share have been a bit disappointing, but and we don't think the total returns are amazing. We wouldn't say the CEO pay is too high, but we'd venture the company should look to improve its business metrics (and share price) before paying any more. Whatever your view on compensation, you might want to check if insiders are buying or selling Grand Ming Group Holdings shares (free trial).
If you want to buy a stock that is better than Grand Ming Group Holdings, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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.