A Look At Nameson Holdings' (HKG:1982) CEO Remuneration

The CEO of Nameson Holdings Limited (HKG:1982) is Ting Chung Wong, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

See our latest analysis for Nameson Holdings

How Does Total Compensation For Ting Chung Wong Compare With Other Companies In The Industry?

Our data indicates that Nameson Holdings Limited has a market capitalization of HK$1.0b, and total annual CEO compensation was reported as HK$4.5m for the year to March 2020. That's a notable increase of 9.6% on last year. In particular, the salary of HK$2.40m, 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$2.4m. Accordingly, our analysis reveals that Nameson Holdings Limited pays Ting Chung Wong north of the industry median. Furthermore, Ting Chung Wong directly owns HK$757m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 93% of total compensation out of all the companies we analyzed, while other remuneration made up 7.3% of the pie. It's interesting to note that Nameson Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. 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.

Nameson Holdings Limited's Growth

Over the last three years, Nameson Holdings Limited has shrunk its earnings per share by 34% per year. Its revenue is down 17% over the previous year.

The decline in EPS is a bit concerning. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. 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 Nameson Holdings Limited Been A Good Investment?

Given the total shareholder loss of 83% over three years, many shareholders in Nameson Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we noted earlier, Nameson Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Disappointingly, share price gains over the last three years have failed to materialize. Arguably worse, we've been waiting for positive EPS growth for the last three years. Considering such poor performance, we think shareholders might be concerned if the CEO's compensation were to grow.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 3 warning signs for Nameson Holdings that investors should look into moving forward.

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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