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Is Walcom Group Limited's (LON:WALG) CEO Salary Justified?

Simply Wall St

Francis Chi is the CEO of Walcom Group Limited (LON:WALG). 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 process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Walcom Group

How Does Francis Chi's Compensation Compare With Similar Sized Companies?

Our data indicates that Walcom Group Limited is worth UK£241k, and total annual CEO compensation was reported as HK$2.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.3m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$2.5m.

So Francis Chi receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Walcom Group, below.

AIM:WALG CEO Compensation, October 17th 2019

Is Walcom Group Limited Growing?

On average over the last three years, Walcom Group Limited has shrunk earnings per share by 79% each year (measured with a line of best fit). It saw its revenue drop 45% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Walcom Group Limited Been A Good Investment?

With a three year total loss of 72%, Walcom Group Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! Whatever your view on compensation, you might want to check if insiders are buying or selling Walcom 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.

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.