How Much Is New Trend Lifestyle Group Plc (LON:NTLG) CEO Getting Paid?
Hillary Hua is the CEO of New Trend Lifestyle Group Plc (LON:NTLG), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for New Trend Lifestyle Group.
See our latest analysis for New Trend Lifestyle Group
Comparing New Trend Lifestyle Group Plc's CEO Compensation With the industry
According to our data, New Trend Lifestyle Group Plc has a market capitalization of UK£788k, and paid its CEO total annual compensation worth S$608k over the year to December 2019. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is S$593.0k, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under UK£154m, the reported median total CEO compensation was S$286k. Accordingly, our analysis reveals that New Trend Lifestyle Group Plc pays Hillary Hua north of the industry median. Moreover, Hillary Hua also holds UK£110k worth of New Trend Lifestyle Group stock directly under their own name.
Component | 2019 | 2018 | Proportion (2019) |
Salary | S$593k | S$593k | 98% |
Other | S$15k | S$17k | 2% |
Total Compensation | S$608k | S$610k | 100% |
Speaking on an industry level, nearly 59% of total compensation represents salary, while the remainder of 41% is other remuneration. Investors will find it interesting that New Trend Lifestyle Group pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
New Trend Lifestyle Group Plc's Growth
New Trend Lifestyle Group Plc's earnings per share (EPS) grew 80% per year over the last three years. In the last year, its revenue is up 2.8%.
Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 New Trend Lifestyle Group Plc Been A Good Investment?
Given the total shareholder loss of 78% over three years, many shareholders in New Trend Lifestyle Group Plc are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
To Conclude...
Hillary receives almost all of their compensation through a salary. As we touched on above, New Trend Lifestyle Group Plc is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for New Trend Lifestyle Group (1 doesn't sit too well with us!) that you should be aware of before investing here.
Important note: New Trend Lifestyle Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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