The CEO of Hung Fook Tong Group Holdings Limited (HKG:1446) is Wing Fu Szeto. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Wing Fu Szeto's Compensation Compare With Similar Sized Companies?
According to our data, Hung Fook Tong Group Holdings Limited has a market capitalization of HK$253m, and paid its CEO total annual compensation worth HK$2.5m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.2m. 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.
Thus we can conclude that Wing Fu Szeto receives more in total compensation than the median of a group of companies in the same market, and of similar size to Hung Fook Tong Group Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Hung Fook Tong Group Holdings has changed from year to year.
Is Hung Fook Tong Group Holdings Limited Growing?
Over the last three years Hung Fook Tong Group Holdings Limited has grown its earnings per share (EPS) by an average of 16% per year (using a line of best fit). It achieved revenue growth of 3.4% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hung Fook Tong Group Holdings Limited Been A Good Investment?
Given the total loss of 41% over three years, many shareholders in Hung Fook Tong Group Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We examined the amount Hung Fook Tong Group Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if Hung Fook Tong Group Holdings insiders are buying or selling shares.
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.
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