U.S. markets open in 5 hours 46 minutes
  • S&P Futures

    3,316.25
    -17.50 (-0.52%)
     
  • Dow Futures

    27,247.00
    -161.00 (-0.59%)
     
  • Nasdaq Futures

    11,256.75
    -81.00 (-0.71%)
     
  • Russell 2000 Futures

    1,497.70
    -9.30 (-0.62%)
     
  • Crude Oil

    39.11
    -0.18 (-0.46%)
     
  • Gold

    1,889.80
    -13.40 (-0.70%)
     
  • Silver

    23.93
    -0.51 (-2.09%)
     
  • EUR/USD

    1.1729
    -0.0017 (-0.14%)
     
  • 10-Yr Bond

    0.6450
    0.0000 (0.00%)
     
  • Vix

    26.80
    +0.61 (+2.33%)
     
  • GBP/USD

    1.2819
    -0.0041 (-0.32%)
     
  • USD/JPY

    105.5700
    -0.0850 (-0.08%)
     
  • BTC-USD

    10,742.47
    -101.74 (-0.94%)
     
  • CMC Crypto 200

    230.40
    +0.73 (+0.32%)
     
  • FTSE 100

    5,907.57
    +10.07 (+0.17%)
     
  • Nikkei 225

    23,185.12
    -353.98 (-1.50%)
     

Is Hong Kong Finance Investment Holding Group Limited's (HKG:7) CEO Being Overpaid?

Simply Wall St

Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!

Say Chui is the CEO of Hong Kong Finance Investment Holding Group Limited (HKG:7). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Hong Kong Finance Investment Holding Group

How Does Say Chui's Compensation Compare With Similar Sized Companies?

Our data indicates that Hong Kong Finance Investment Holding Group Limited is worth HK$3.6b, and total annual CEO compensation is HK$660k. (This is based on the year to December 2018). That's a modest increase of 1.9% on the prior year year. Notably, the salary of HK$660k is the vast majority of the CEO compensation. 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$2.2m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.

You can see, below, how CEO compensation at Hong Kong Finance Investment Holding Group has changed over time.

SEHK:7 CEO Compensation, June 3rd 2019
SEHK:7 CEO Compensation, June 3rd 2019

Is Hong Kong Finance Investment Holding Group Limited Growing?

Over the last three years Hong Kong Finance Investment Holding Group Limited has grown its earnings per share (EPS) by an average of 105% per year (using a line of best fit). In the last year, its revenue is up 953%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. 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 Hong Kong Finance Investment Holding Group Limited Been A Good Investment?

I think that the total shareholder return of 46%, over three years, would leave most Hong Kong Finance Investment Holding Group Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

It looks like Hong Kong Finance Investment Holding Group Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Say Chui deserves a raise!

It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Hong Kong Finance Investment Holding Group insiders are buying or selling shares.

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.