Sui Keung Chiu became the CEO of Elife Holdings Limited (HKG:223) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Elife Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
Check out our latest analysis for Elife Holdings
Comparing Elife Holdings Limited's CEO Compensation With the industry
At the time of writing, our data shows that Elife Holdings Limited has a market capitalization of HK$160m, and reported total annual CEO compensation of HK$1.6m for the year to March 2020. That's a modest increase of 3.1% on the prior year. We note that the salary portion, which stands at HK$1.48m 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 HK$2.6m. In other words, Elife Holdings pays its CEO lower than the industry median. Furthermore, Sui Keung Chiu directly owns HK$1.5m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$1.5m | HK$1.5m | 92% |
| Other | HK$122k | HK$18k | 8% |
| Total Compensation | HK$1.6m | HK$1.6m | 100% |
Speaking on an industry level, nearly 92% of total compensation represents salary, while the remainder of 7.6% is other remuneration. Our data reveals that Elife Holdings allocates salary more or less in line with the wider market. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.
Elife Holdings Limited's Growth
Elife Holdings Limited's earnings per share (EPS) grew 29% per year over the last three years. In the last year, its revenue is up 80%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Elife Holdings Limited Been A Good Investment?
Given the total shareholder loss of 80% over three years, many shareholders in Elife Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As we touched on above, Elife Holdings Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth over three years is certainly impressive. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But shareholders will likely want to hold off on any raise for Sui Keung until investor returns are positive.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. In our study, we found 5 warning signs for Elife Holdings you should be aware of, and 2 of them make us uncomfortable.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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Access Free AnalysisThis 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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About SEHK:223
Elife Holdings
An investment holding company, engages in the supply chain business for branded goods and consumer products in Hong Kong and the People’s Republic of China.
Adequate balance sheet slight.
