Yu Chih has been the CEO of FIH Mobile Limited (HKG:2038) since 2012. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

View our latest analysis for FIH Mobile

How Does Yu Chih's Compensation Compare With Similar Sized Companies?

Our data indicates that FIH Mobile Limited is worth HK$13b, and total annual CEO compensation was reported as US$713k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$101k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$1.0b to US$3.2b, and discovered that the median CEO total compensation of that group was US$551k.

So Yu Chih 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.

The graphic below shows how CEO compensation at FIH Mobile has changed from year to year.

Is FIH Mobile Limited Growing?

Over the last three years FIH Mobile Limited has shrunk its earnings per share by an average of 84% per year (measured with a line of best fit). In the last year, its revenue is up 3.4%.

Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.

Has FIH Mobile Limited Been A Good Investment?

Given the total loss of 33% over three years, many shareholders in FIH Mobile Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

Yu Chih is paid around the same as most CEOs of similar size companies.

After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at FIH Mobile.

Important note: FIH Mobile 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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