What Did IBI Group Holdings Limited's (HKG:1547) CEO Take Home Last Year?
Neil Howard has been the CEO of IBI Group Holdings Limited (HKG:1547) since 2016. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for IBI Group Holdings
How Does Neil Howard's Compensation Compare With Similar Sized Companies?
According to our data, IBI Group Holdings Limited has a market capitalization of HK$312m, and paid its CEO total annual compensation worth HK$3.6m over the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$2.4m. 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$1.7m.
As you can see, Neil Howard is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IBI Group Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see, below, how CEO compensation at IBI Group Holdings has changed over time.
Is IBI Group Holdings Limited Growing?
IBI Group Holdings Limited has increased its earnings per share (EPS) by an average of 3.9% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.4% over the last year.
I'd prefer higher revenue growth, but the modest improvement in EPS is good. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has IBI Group Holdings Limited Been A Good Investment?
IBI Group Holdings Limited has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
We compared the total CEO remuneration paid by IBI Group Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We generally prefer to see stronger EPS growth, and we're not particularly impressed with the total shareholder return, over the last three years. So it's certainly hard to argue that the CEO is modestly paid, although we don't see the remuneration as an issue. Shareholders may want to check for free if IBI Group Holdings insiders are buying or selling shares.
Important note: IBI Group Holdings 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.
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.
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