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Is PC Partner Group Limited (HKG:1263) Excessively Paying Its CEO?

Simply Wall St

In 2011 Tony Wong was appointed CEO of PC Partner Group Limited (HKG:1263). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for PC Partner Group

How Does Tony Wong's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that PC Partner Group Limited has a market cap of HK$778m, and reported total annual CEO compensation of HK$13m for the year to December 2018. Notably, the salary of HK$12m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.

As you can see, Tony Wong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean PC Partner Group Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at PC Partner Group has changed over time.

SEHK:1263 CEO Compensation, January 16th 2020

Is PC Partner Group Limited Growing?

On average over the last three years, PC Partner Group Limited has grown earnings per share (EPS) by 9.4% each year (using a line of best fit). Its revenue is down 37% over last year.

I would prefer it if there was revenue growth, but the improvement in EPS is good. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. Shareholders might be interested in this free visualization of analyst forecasts.

Has PC Partner Group Limited Been A Good Investment?

PC Partner Group Limited has served shareholders reasonably well, with a total return of 18% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

We compared total CEO remuneration at PC Partner Group 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.

We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Whatever your view on compensation, you might want to check if insiders are buying or selling PC Partner Group shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.