What We Learned About Man Shing Global Holdings' (HKG:8309) CEO Pay

Man Sing Wong became the CEO of Man Shing Global Holdings Limited (HKG:8309) in 2016, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Man Shing Global Holdings.

See our latest analysis for Man Shing Global Holdings

Comparing Man Shing Global Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Man Shing Global Holdings Limited has a market capitalization of HK$36m, and reported total annual CEO compensation of HK$2.0m for the year to March 2020. We note that's an increase of 51% above last year. In particular, the salary of HK$1.51m, makes up a huge portion of the total compensation being paid to 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 Man Sing Wong is paid more than the median for the industry. Furthermore, Man Sing Wong directly owns HK$11m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 89% of total compensation represents salary and 11% is other remuneration. In Man Shing Global Holdings' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Man Shing Global Holdings Limited's Growth Numbers

Man Shing Global Holdings Limited's earnings per share (EPS) grew 123% per year over the last three years. Its revenue is up 45% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. The combination of strong revenue growth with medium-term EPS improvement certainly points to the kind of growth we like to see. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Man Shing Global Holdings Limited Been A Good Investment?

Given the total shareholder loss of 87% over three years, many shareholders in Man Shing Global Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we noted earlier, Man Shing Global Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed with its EPS growth, but we cannot say the same about the uninspiring shareholder returns (over the last three years). Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which makes us a bit uncomfortable) in Man Shing Global Holdings we think you should know about.

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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