The CEO of Grand Ming Group Holdings Limited (HKG:1271) is Chi Wah Lau, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Grand Ming Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
How Does Total Compensation For Chi Wah Lau Compare With Other Companies In The Industry?
According to our data, Grand Ming Group Holdings Limited has a market capitalization of HK$6.5b, and paid its CEO total annual compensation worth HK$3.3m over the year to March 2020. Notably, that's an increase of 28% over the year before. We note that the salary portion, which stands at HK$2.33m constitutes the majority of total compensation received by the CEO.
In comparison with other companies in the industry with market capitalizations ranging from HK$3.1b to HK$12b, the reported median CEO total compensation was HK$1.7m. Hence, we can conclude that Chi Wah Lau is remunerated higher than the industry median. What's more, Chi Wah Lau holds HK$485m 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 91% of total compensation represents salary and 8.8% is other remuneration. In Grand Ming Group Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Grand Ming Group Holdings Limited's Growth Numbers
Over the last three years, Grand Ming Group Holdings Limited has shrunk its earnings per share by 45% per year. It achieved revenue growth of 47% over the last year.
The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Grand Ming Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 130% over three years, Grand Ming Group Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
As we noted earlier, Grand Ming Group Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Still, shareholder returns over the last three years,and recent revenue growth have been trending northwards. The only sore spot is EPS growth, which is negative over the same period. Considering all the factors, we would have to say CEO pay is fair; however, moving forward, it would be nice to see EPS growth from the company as well.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Grand Ming Group Holdings you should be aware of, and 2 of them don't sit too well with us.
Switching gears from Grand Ming Group 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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