Yu Chih became the CEO of FIH Mobile Limited (HKG:2038) in 2012. 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. 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.
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How Does Yu Chih's Compensation Compare With Similar Sized Companies?
Our data indicates that FIH Mobile Limited is worth HK$7.9b, and total annual CEO compensation is US$1.6m. (This number is for the twelve months until December 2017). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$95k. We looked at a group of companies with market capitalizations from US$400m to US$1.6b, and the median CEO total compensation was US$401k.
It would therefore appear that FIH Mobile Limited pays Yu Chih more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at FIH Mobile has changed over time.
Is FIH Mobile Limited Growing?
On average over the last three years, FIH Mobile Limited has shrunk earnings per share by 112% each year (measured with a line of best fit). It achieved revenue growth of 24% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has FIH Mobile Limited Been A Good Investment?
With a three year total loss of 60%, FIH Mobile Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared total CEO remuneration at FIH Mobile Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Arguably worse, investors are without a positive return for the last three years. In our opinion the CEO might be paid too generously! Shareholders may want to check for free if FIH Mobile insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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