What Did Orient Victory Travel Group's (HKG:265) CEO Take Home Last Year?

Baodong Shi has been the CEO of Orient Victory Travel Group Company Limited (HKG:265) since 2018, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Orient Victory Travel Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Orient Victory Travel Group

Comparing Orient Victory Travel Group Company Limited's CEO Compensation With the industry

Our data indicates that Orient Victory Travel Group Company Limited has a market capitalization of HK$1.0b, and total annual CEO compensation was reported as HK$1.9m for the year to December 2019. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at HK$1.92m constitutes the majority of total compensation received by the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$2.0m. So it looks like Orient Victory Travel Group compensates Baodong Shi in line with the median for the industry. What's more, Baodong Shi holds HK$542m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Orient Victory Travel Group is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. 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.

Orient Victory Travel Group Company Limited's Growth

Over the past three years, Orient Victory Travel Group Company Limited has seen its earnings per share (EPS) grow by 38% per year. It achieved revenue growth of 58% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Orient Victory Travel Group Company Limited Been A Good Investment?

Since shareholders would have lost about 76% over three years, some Orient Victory Travel Group Company Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Orient Victory Travel Group pays its CEO a majority of compensation through a salary. As we touched on above, Orient Victory Travel Group Company Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, the company has logged negative shareholder returns over the last three years. But on the bright side, EPS growth is positive over the same period. Considering positive EPS growth, we'd say compensation is fair, but shareholders may be wary of a bump in pay before the company logs positive returns.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Orient Victory Travel Group we think you should know about.

Switching gears from Orient Victory Travel 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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