Eva Tse is the CEO of Bar Pacific Group Holdings Limited (HKG:8432), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
View our latest analysis for Bar Pacific Group Holdings
How Does Total Compensation For Eva Tse Compare With Other Companies In The Industry?
At the time of writing, our data shows that Bar Pacific Group Holdings Limited has a market capitalization of HK$77m, and reported total annual CEO compensation of HK$793k for the year to March 2020. That's a modest increase of 4.5% on the prior year. We note that the salary portion, which stands at HK$717.0k constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.9m. This suggests that Eva Tse is paid below the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$717k | HK$741k | 90% |
| Other | HK$76k | HK$18k | 10% |
| Total Compensation | HK$793k | HK$759k | 100% |
On an industry level, around 87% of total compensation represents salary and 13% is other remuneration. There isn't a significant difference between Bar Pacific Group Holdings and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at Bar Pacific Group Holdings Limited's Growth Numbers
Over the last three years, Bar Pacific Group Holdings Limited has shrunk its earnings per share by 39% per year. Its revenue is down 39% over the previous 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. 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 Bar Pacific Group Holdings Limited Been A Good Investment?
Since shareholders would have lost about 22% over three years, some Bar Pacific Group Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we touched on above, Bar Pacific Group Holdings Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. While we are quite underwhelmed with EPS growth, the shareholder returns over the past three years have also failed to impress us. Although we wouldn’t say CEO compensation is high, it’s tough to foresee shareholders warming up to thoughts of a bump anytime soon.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Bar Pacific Group Holdings (of which 2 shouldn't be ignored!) that you should know about in order to have a holistic understanding of the stock.
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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About SEHK:8432
Bar Pacific Group Holdings
An investment holding company, operates a chain of bars and restaurants under the Bar Pacific, Pacific, Moon Ocean, and Katachi brands in Hong Kong.
Good value with imperfect balance sheet.
