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In 1970 Glendy Choi was appointed CEO of D&G Technology Holding Company Limited (HKG:1301). 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 Glendy Choi’s Compensation Compare With Similar Sized Companies?
According to our data, D&G Technology Holding Company Limited has a market capitalization of HK$808m, and pays its CEO total annual compensation worth CN¥2.4m. (This is based on the year to December 2018). We note that’s an increase of 12% above last year. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at CN¥1.9m. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.5m.
It would therefore appear that D&G Technology Holding Company Limited pays Glendy Choi more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at D&G Technology Holding has changed from year to year.
Is D&G Technology Holding Company Limited Growing?
D&G Technology Holding Company Limited has reduced its earnings per share by an average of 85% a year, over the last three years (measured with a line of best fit). In the last year, its revenue is down -27%.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. We don’t have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has D&G Technology Holding Company Limited Been A Good Investment?
Boasting a total shareholder return of 52% over three years, D&G Technology Holding Company Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO were to be paid more than is normal for a company of its size.
We compared total CEO remuneration at D&G Technology Holding Company Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.
However, we can’t argue with the strong returns to shareholders, over the same time period. So on this analysis we’d stop short of criticizing the level of CEO compensation. Shareholders may want to check for free if D&G Technology Holding insiders are buying or selling shares.
If you want to buy a stock that is better than D&G Technology Holding, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.