How Much Is Public Financial Holdings Limited (HKG:626) Paying Its CEO?

The CEO of Public Financial Holdings Limited (HKG:626) is Yoke Kong Tan, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Public Financial Holdings

How Does Total Compensation For Yoke Kong Tan Compare With Other Companies In The Industry?

Our data indicates that Public Financial Holdings Limited has a market capitalization of HK$2.3b, and total annual CEO compensation was reported as HK$4.1m for the year to December 2020. That is, the compensation was roughly the same as last year. In particular, the salary of HK$2.63m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the same industry with market capitalizations ranging between HK$775m and HK$3.1b had a median total CEO compensation of HK$5.9m. Accordingly, Public Financial Holdings pays its CEO under the industry median. What's more, Yoke Kong Tan holds HK$1.1m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, roughly 62% of total compensation represents salary and 38% is other remuneration. Our data reveals that Public Financial Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Public Financial Holdings Limited's Growth

Over the last three years, Public Financial Holdings Limited has shrunk its earnings per share by 7.6% per year. In the last year, its revenue changed by just 0.8%.

The decline in EPS is a bit concerning. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Public Financial Holdings Limited Been A Good Investment?

With a three year total loss of 25% for the shareholders, Public Financial Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Public Financial Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Public Financial Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Public Financial Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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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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