Here's What We Think About D&G Technology Holding's (HKG:1301) CEO Pay

By
Simply Wall St
Published
September 19, 2020
SEHK:1301
Source: Shutterstock

Glendy Choi is the CEO of D&G Technology Holding Company Limited (HKG:1301), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for D&G Technology Holding.

See our latest analysis for D&G Technology Holding

How Does Total Compensation For Glendy Choi Compare With Other Companies In The Industry?

Our data indicates that D&G Technology Holding Company Limited has a market capitalization of HK$653m, and total annual CEO compensation was reported as CN¥2.4m for the year to December 2019. We note that's an increase of 17% above last year. We note that the salary portion, which stands at CN¥2.22m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was CN¥1.5m. This suggests that Glendy Choi is paid more than the median for the industry.

Component20192018Proportion (2019)
Salary CN¥2.2m CN¥1.9m 92%
Other CN¥190k CN¥175k 8%
Total CompensationCN¥2.4m CN¥2.1m100%

Talking in terms of the industry, salary represented approximately 86% of total compensation out of all the companies we analyzed, while other remuneration made up 14% of the pie. D&G Technology Holding is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
SEHK:1301 CEO Compensation September 20th 2020

A Look at D&G Technology Holding Company Limited's Growth Numbers

Over the last three years, D&G Technology Holding Company Limited has shrunk its earnings per share by 44% per year. In the last year, its revenue is up 1.4%.

Few shareholders would be pleased to read that EPS have declined. The fairly low revenue growth fails to impress given that the EPS is down. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has D&G Technology Holding Company Limited Been A Good Investment?

D&G Technology Holding Company Limited has served shareholders reasonably well, with a total return of 27% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

To Conclude...

As we noted earlier, D&G Technology Holding pays its CEO higher than the norm for similar-sized companies belonging to the same industry. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And shareholder returns are decent but not great. So you can understand why we do not think CEO compensation is particularly modest!

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which shouldn't be ignored) in D&G Technology Holding we think you should know about.

Important note: D&G Technology Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE 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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