Man Ping Tsang has been the CEO of Gain Plus Holdings Limited (HKG:9900) since 2017, and this article will examine the executive's compensation 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 Gain Plus Holdings.
Check out our latest analysis for Gain Plus Holdings
How Does Total Compensation For Man Ping Tsang Compare With Other Companies In The Industry?
At the time of writing, our data shows that Gain Plus Holdings Limited has a market capitalization of HK$491m, and reported total annual CEO compensation of HK$4.2m for the year to March 2020. That's a notable increase of 84% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$1.2m.
In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. Accordingly, our analysis reveals that Gain Plus Holdings Limited pays Man Ping Tsang north of the industry median. Furthermore, Man Ping Tsang directly owns HK$139m worth of shares in the company, implying that they are deeply invested in the company's success.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$1.2m | HK$1.1m | 29% |
| Other | HK$3.0m | HK$1.2m | 71% |
| Total Compensation | HK$4.2m | HK$2.3m | 100% |
Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 8.8% is other remuneration. Gain Plus Holdings sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.
A Look at Gain Plus Holdings Limited's Growth Numbers
Over the past three years, Gain Plus Holdings Limited has seen its earnings per share (EPS) grow by 20% per year. It saw its revenue drop 16% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. 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 Gain Plus Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Gain Plus Holdings Limited for providing a total return of 64% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
To Conclude...
As previously discussed, Man Ping is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But EPS growth and shareholder returns have been top-notch for the past three years. As a result of the excellent all-round performance of the company, we believe CEO compensation is fair. Given the strong history of shareholder returns, the shareholders are probably very happy with Man Ping's performance.
CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 2 warning signs for Gain Plus Holdings that investors should look into moving forward.
Important note: Gain Plus Holdings 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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About SEHK:9900
Gain Plus Holdings
An investment holding company, engages in the provision of construction contracting services for public and private sectors in Hong Kong.
Flawless balance sheet low.
