Shun-Chuen Lam is the CEO of Oriental Press Group Limited (HKG:18). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Shun-Chuen Lam's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Oriental Press Group Limited has a market cap of HK$1.5b, and is paying total annual CEO compensation of HK$2.7m. (This figure is for the year to March 2019). Notably, that's an increase of 20% over the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$2.7m. We examined companies with market caps from HK$784m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.3m.
So Shun-Chuen Lam is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Oriental Press Group, below.
Is Oriental Press Group Limited Growing?
On average over the last three years, Oriental Press Group Limited has grown earnings per share (EPS) by 5.0% each year (using a line of best fit). Its revenue is down -7.5% over last year.
I generally like to see a little revenue growth, but I'm happy with the EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Oriental Press Group Limited Been A Good Investment?
I think that the total shareholder return of 34%, over three years, would leave most Oriental Press Group Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Remuneration for Shun-Chuen Lam is close enough to the median pay for a CEO of a similar sized company .
The company isn't showing particularly great growth, but shareholder returns have been pleasing. So all things considered I'd venture that the CEO pay is appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Oriental Press 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.
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