In 2017 Michael Tse was appointed CEO of Green Leader Holdings Group Limited (HKG:61). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Michael Tse's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Green Leader Holdings Group Limited has a market cap of HK$263m, and reported total annual CEO compensation of HK$5.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$1.6m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
As you can see, Michael Tse is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Green Leader Holdings 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 a visual representation of the CEO compensation at Green Leader Holdings Group, below.
Is Green Leader Holdings Group Limited Growing?
Over the last three years Green Leader Holdings Group Limited has shrunk its earnings per share by an average of 3.3% per year (measured with a line of best fit). Its revenue is up 35% over last year.
As investors, we are a bit wary of companies that have lower earnings per share, over three years. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. 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 Green Leader Holdings Group Limited Been A Good Investment?
Given the total loss of 88% over three years, many shareholders in Green Leader Holdings Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Green Leader Holdings Group Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. Shareholders may want to check for free if Green Leader Holdings Group insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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