- Hong Kong
- /
- Food and Staples Retail
- /
- SEHK:1854
How Should Investors Feel About Goal Forward Holdings' (HKG:1854) CEO Remuneration?
This article will reflect on the compensation paid to Shuk Kwan Wu who has served as CEO of Goal Forward Holdings Limited (HKG:1854) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Goal Forward Holdings.
See our latest analysis for Goal Forward Holdings
How Does Total Compensation For Shuk Kwan Wu Compare With Other Companies In The Industry?
According to our data, Goal Forward Holdings Limited has a market capitalization of HK$146m, and paid its CEO total annual compensation worth HK$882k over the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$600.0k, represents most of the total compensation being paid.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.4m. Accordingly, Goal Forward Holdings pays its CEO under the industry median.
Component | 2020 | 2019 | Proportion (2020) |
Salary | HK$600k | HK$600k | 68% |
Other | HK$282k | HK$282k | 32% |
Total Compensation | HK$882k | HK$882k | 100% |
Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. It's interesting to note that Goal Forward Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Goal Forward Holdings Limited's Growth Numbers
Over the last three years, Goal Forward Holdings Limited has shrunk its earnings per share by 72% per year. Its revenue is down 31% over the previous year.
Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Goal Forward Holdings Limited Been A Good Investment?
Since shareholders would have lost about 44% over three years, some Goal Forward Holdings 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 we noted earlier, Goal Forward Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. We can't say the CEO compensation is high, but shareholders will be cold to a bump at this stage, considering negative investor returns.
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 Goal Forward Holdings (of which 2 are concerning!) that you should know about in order to have a holistic understanding of the stock.
Switching gears from Goal Forward Holdings, 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.
If you’re looking to trade Goal Forward Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: AI Stock Screener & Alerts
Our new AI Stock Screener scans the market every day to uncover opportunities.
• Dividend Powerhouses (3%+ Yield)
• Undervalued Small Caps with Insider Buying
• High growth Tech and AI Companies
Or build your own from over 50 metrics.
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
About SEHK:1854
China Wantian Holdings
An investment holding company, engages in the green food supply and catering chain, and environmental protection and technology businesses in Hong Kong and the People’s Republic of China.
Adequate balance sheet very low.