The CEO of Ngai Hing Hong Company Limited (HKG:1047) is Kwok Kwong Hui. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kwok Kwong Hui's Compensation Compare With Similar Sized Companies?
According to our data, Ngai Hing Hong Company Limited has a market capitalization of HK$155m, and paid its CEO total annual compensation worth HK$4.5m over the year to June 2019. That's a notable increase of 11% on last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.5m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
It would therefore appear that Ngai Hing Hong Company Limited pays Kwok Kwong Hui 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Ngai Hing Hong has changed over time.
Is Ngai Hing Hong Company Limited Growing?
On average over the last three years, Ngai Hing Hong Company Limited has grown earnings per share (EPS) by 32% each year (using a line of best fit). In the last year, its revenue is down 7.1%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important. 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 Ngai Hing Hong Company Limited Been A Good Investment?
With a three year total loss of 46%, Ngai Hing Hong Company Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Ngai Hing Hong Company Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. However, the returns to investors are far less impressive, over the same period. So shareholders might not feel great about the fact that CEO pay increased on last year. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Ngai Hing Hong (free visualization of insider trades).
If you want to buy a stock that is better than Ngai Hing Hong, this free list of high return, low debt companies is a great place to look.
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