Man Ying Yuen is the CEO of EGL Holdings Company Limited (HKG:6882), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for EGL Holdings.
See our latest analysis for EGL Holdings
How Does Total Compensation For Man Ying Yuen Compare With Other Companies In The Industry?
At the time of writing, our data shows that EGL Holdings Company Limited has a market capitalization of HK$206m, and reported total annual CEO compensation of HK$2.5m for the year to December 2019. Notably, that's a decrease of 16% over the year before. We note that the salary portion, which stands at HK$2.07m 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. This suggests that EGL Holdings remunerates its CEO largely in line with the industry average.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | HK$2.1m | HK$2.0m | 83% |
| Other | HK$433k | HK$989k | 17% |
| Total Compensation | HK$2.5m | HK$3.0m | 100% |
On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. Although there is a difference in how total compensation is set, EGL Holdings more or less reflects the market in terms of setting the salary. 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.
EGL Holdings Company Limited's Growth
Over the last three years, EGL Holdings Company Limited has shrunk its earnings per share by 70% per year. It saw its revenue drop 36% over the last year.
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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has EGL Holdings Company Limited Been A Good Investment?
Since shareholders would have lost about 67% over three years, some EGL Holdings Company Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
To Conclude...
As we touched on above, EGL Holdings 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. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.
CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 3 warning signs (and 2 which shouldn't be ignored) in EGL Holdings we think you should know about.
Switching gears from EGL 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.
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Access Free AnalysisThis 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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About SEHK:6882
EGL Holdings
An investment holding company, provides package tours in Hong Kong, Macau, Japan, and internationally.
Solid track record and good value.
