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Is Synergy Group Holdings International Limited (HKG:1539) Overpaying Its CEO?

Simply Wall St

Mansfield Wong is the CEO of Synergy Group Holdings International Limited (HKG:1539). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.

Check out our latest analysis for Synergy Group Holdings International

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

At the time of writing our data says that Synergy Group Holdings International Limited has a market cap of HK$545m, and is paying total annual CEO compensation of HK$1.1m. (This number is for the twelve months until March 2018). Notably, the salary of HK$1.1m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.5m.

That means Mansfield Wong receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see a visual representation of the CEO compensation at Synergy Group Holdings International, below.

SEHK:1539 CEO Compensation, April 18th 2019

Is Synergy Group Holdings International Limited Growing?

Synergy Group Holdings International Limited has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). It achieved revenue growth of 19% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Synergy Group Holdings International Limited Been A Good Investment?

With a three year total loss of 50%, Synergy Group Holdings International Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Remuneration for Mansfield Wong is close enough to the median pay for a CEO of a similar sized company .

We like that the company is growing EPS, but we find the returns over the last three years to be lacking. We'd be surprised if shareholders want to see a pay rise for the CEO, but we'd stop short of calling their pay too generous. So you may want to check if insiders are buying Synergy Group Holdings International shares with their own money (free access).

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

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.