Is Dah Sing Banking Group Limited's (HKG:2356) CEO Paid At A Competitive Rate?
In 2017 Derek Wong was appointed CEO of Dah Sing Banking Group Limited (HKG:2356). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Dah Sing Banking Group
How Does Derek Wong's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Dah Sing Banking Group Limited has a market cap of HK$14b, and reported total annual CEO compensation of HK$12m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$8.4m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO total compensation was HK$4.4m.
It would therefore appear that Dah Sing Banking Group Limited pays Derek Wong 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. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Dah Sing Banking Group, below.
Is Dah Sing Banking Group Limited Growing?
Over the last three years Dah Sing Banking Group Limited has grown its earnings per share (EPS) by an average of 5.7% per year (using a line of best fit). In the last year, its revenue is up 11%.
This revenue growth could really point to a brighter future. And the improvement in earnings per share is modest but respectable. So while we'd stop just short of calling this a top performer, but we think it is well worth watching. Shareholders might be interested in this free visualization of analyst forecasts.
Has Dah Sing Banking Group Limited Been A Good Investment?
With a three year total loss of 26%, Dah Sing Banking Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at Dah Sing Banking Group Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Dah Sing Banking Group.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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.
