A Quick Analysis On TK Group (Holdings)'s (HKG:2283) CEO Compensation

The CEO of TK Group (Holdings) Limited (HKG:2283) is Michael Yung, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether TK Group (Holdings) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for TK Group (Holdings)

How Does Total Compensation For Michael Yung Compare With Other Companies In The Industry?

Our data indicates that TK Group (Holdings) Limited has a market capitalization of HK$1.8b, and total annual CEO compensation was reported as HK$5.5m for the year to December 2019. That's a notable decrease of 23% on last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$2.6m.

In comparison with other companies in the industry with market capitalizations ranging from HK$775m to HK$3.1b, the reported median CEO total compensation was HK$2.3m. Accordingly, our analysis reveals that TK Group (Holdings) Limited pays Michael Yung north of the industry median. Moreover, Michael Yung also holds HK$119m worth of TK Group (Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. It's interesting to note that TK Group (Holdings) allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at TK Group (Holdings) Limited's Growth Numbers

TK Group (Holdings) Limited's earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue changed by just 0.5%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Historical performance can sometimes be a good indicator on what's coming up next but if you want to peer into the company's future you might be interested in this free visualization of analyst forecasts.

Has TK Group (Holdings) Limited Been A Good Investment?

With a three year total loss of 24% for the shareholders, TK Group (Holdings) Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, TK Group (Holdings) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. However, the earnings per share growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Although we'd stop short of calling it inappropriate, we think Michael is earning a very handsome sum.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 2 warning signs for TK Group (Holdings) that investors should be aware of in a dynamic business environment.

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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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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