Key Things To Understand About Ten Pao Group Holdings' (HKG:1979) CEO Pay Cheque

The CEO of Ten Pao Group Holdings Limited (HKG:1979) is Kwong Yee Hung, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Ten Pao Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Ten Pao Group Holdings

How Does Total Compensation For Kwong Yee Hung Compare With Other Companies In The Industry?

Our data indicates that Ten Pao Group Holdings Limited has a market capitalization of HK$1.8b, and total annual CEO compensation was reported as HK$11m for the year to December 2019. That's a notable increase of 45% on last year. In particular, the salary of HK$5.43m, 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$1.5m. This suggests that Kwong Yee Hung is paid more than the median for the industry. Moreover, Kwong Yee Hung also holds HK$1.2b worth of Ten Pao Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 90% of total compensation represents salary and 9.8% is other remuneration. It's interesting to note that Ten Pao Group Holdings allocates a smaller portion of compensation to salary 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.

Ten Pao Group Holdings Limited's Growth

Ten Pao Group Holdings Limited has reduced its earnings per share by 3.3% a year over the last three years. Revenue was pretty flat on last year.

Overall this is not a very positive result for shareholders. And the flat revenue hardly impresses. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Ten Pao Group Holdings Limited Been A Good Investment?

Ten Pao Group Holdings Limited has generated a total shareholder return of 20% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As we touched on above, Ten Pao Group Holdings Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Unfortunately, EPS has not grown in three years, failing to impress us. And shareholder returns are decent but not great. So you may want to delve deeper, because we don't think the amount Kwong Yee makes is justifiable.

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 2 warning signs for Ten Pao Group Holdings that investors should be aware of in a dynamic business environment.

Switching gears from Ten Pao 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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