How Much Is eprint Group Limited (HKG:1884) CEO Getting Paid?

The CEO of eprint Group Limited (HKG:1884) is William She, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether eprint Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for eprint Group

Comparing eprint Group Limited's CEO Compensation With the industry

At the time of writing, our data shows that eprint Group Limited has a market capitalization of HK$119m, and reported total annual CEO compensation of HK$4.4m for the year to March 2020. We note that's a small decrease of 4.8% on last year. We note that the salary portion, which stands at HK$2.82m 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$1.5m. This suggests that William She is paid more than the median for the industry.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. eprint Group sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

eprint Group Limited's Growth

Over the last three years, eprint Group Limited has shrunk its earnings per share by 39% per year. In the last year, its revenue is down 29%.

Few shareholders would be pleased to read that EPS have declined. And the impression is worse when you consider revenue is down year-on-year. 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 eprint Group Limited Been A Good Investment?

Since shareholders would have lost about 92% over three years, some eprint Group Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, William is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. What's equally worrying is that the company isn't growing by our analysis. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 4 warning signs for eprint Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.

Switching gears from eprint Group, 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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