Does abc Multiactive Limited's (HKG:8131) CEO Salary Reflect Performance?
Samson Hui has been the CEO of abc Multiactive Limited (HKG:8131) since 2005. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for abc Multiactive
How Does Samson Hui's Compensation Compare With Similar Sized Companies?
Our data indicates that abc Multiactive Limited is worth HK$23m, and total annual CEO compensation was reported as HK$953k for the year to November 2018. Notably, the salary of HK$936k is the vast majority of the CEO 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.
A first glance this seems like a real positive for shareholders, since Samson Hui is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at abc Multiactive has changed from year to year.
Is abc Multiactive Limited Growing?
Over the last three years abc Multiactive Limited has grown its earnings per share (EPS) by an average of 22% per year (using a line of best fit). It achieved revenue growth of 8.4% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has abc Multiactive Limited Been A Good Investment?
Given the total loss of 82% over three years, many shareholders in abc Multiactive Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
It appears that abc Multiactive Limited remunerates its CEO below most similar sized companies.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. So while we would not say that Samson Hui is generously paid, it would be good to see an improvement in business performance before too an increase in pay. In this case we may want to look deeper into the company. There are some real positives and we could see improved returns in the longer term. Whatever your view on compensation, you might want to check if insiders are buying or selling abc Multiactive 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.
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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