What Did Sheung Yue Group Holdings' (HKG:1633) CEO Take Home Last Year?

Edmond Chan is the CEO of Sheung Yue Group Holdings Limited (HKG:1633), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Sheung Yue Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Sheung Yue Group Holdings

Comparing Sheung Yue Group Holdings Limited's CEO Compensation With the industry

According to our data, Sheung Yue Group Holdings Limited has a market capitalization of HK$107m, and paid its CEO total annual compensation worth HK$1.7m over the year to March 2020. That's a slightly lower by 7.9% over the previous year. Notably, the salary which is HK$1.73m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.0m. This suggests that Sheung Yue Group Holdings remunerates its CEO largely in line with the industry average.

On an industry level, around 91% of total compensation represents salary and 8.8% is other remuneration. Sheung Yue Group Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Sheung Yue Group Holdings Limited's Growth

Sheung Yue Group Holdings Limited has reduced its earnings per share by 4.3% a year over the last three years. In the last year, its revenue is up 21%.

Investors would be a bit wary of companies that have lower EPS 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 Sheung Yue Group Holdings Limited Been A Good Investment?

Since shareholders would have lost about 65% over three years, some Sheung Yue Group Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Sheung Yue Group Holdings pays its CEO a majority of compensation through a salary. As previously discussed, Edmond is compensated close to the median for companies of its size, and which belong to the same industry. However, revenues have increased over the past year, a positive sign for the company. Contrarily, shareholder returns are in the red over the same stretch. EPS is also not growing, undoubtedly leading to further headaches. It's tough for us to say Edmond is overpaid but a mixed bag in terms of performance will surely irk shareholders and reduce chances of a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Sheung Yue Group Holdings (1 can't be ignored!) that you should be aware of before investing here.

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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