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Yik Bun Hui became the CEO of Bright Smart Securities & Commodities Group Limited (HKG:1428) in 2016. 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. 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.
How Does Yik Bun Hui's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Bright Smart Securities & Commodities Group Limited has a market cap of HK$2.6b, and is paying total annual CEO compensation of HK$5.8m. (This figure is for the year to March 2019). We note that's an increase of 33% above last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.1m. We looked at a group of companies with market capitalizations from HK$1.6b to HK$6.3b, and the median CEO total compensation was HK$2.3m.
It would therefore appear that Bright Smart Securities & Commodities Group Limited pays Yik Bun 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 Bright Smart Securities & Commodities Group has changed over time.
Is Bright Smart Securities & Commodities Group Limited Growing?
Over the last three years Bright Smart Securities & Commodities Group Limited has grown its earnings per share (EPS) by an average of 25% per year (using a line of best fit). It saw its revenue drop -6.5% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bright Smart Securities & Commodities Group Limited Been A Good Investment?
With a three year total loss of 25%, Bright Smart Securities & Commodities Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by Bright Smart Securities & Commodities Group Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, 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 Bright Smart Securities & Commodities Group (free visualization of insider trades).
Important note: Bright Smart Securities & Commodities Group may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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 firstname.lastname@example.org. 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.