Does 1957 (Hospitality)'s (HKG:8495) CEO Salary Compare Well With Industry Peers?

The CEO of 1957 & Co. (Hospitality) Limited (HKG:8495) is Chi Po Kwok, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether 1957 (Hospitality) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for 1957 (Hospitality)

Comparing 1957 & Co. (Hospitality) Limited's CEO Compensation With the industry

According to our data, 1957 & Co. (Hospitality) Limited has a market capitalization of HK$79m, and paid its CEO total annual compensation worth HK$2.1m over the year to December 2019. That's a slight decrease of 6.5% on the prior year. We note that the salary portion, which stands at HK$1.76m 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$2.0m. This suggests that 1957 (Hospitality) remunerates its CEO largely in line with the industry average. Moreover, Chi Po Kwok also holds HK$3.3m worth of 1957 (Hospitality) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Speaking on an industry level, nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. 1957 (Hospitality) is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at 1957 & Co. (Hospitality) Limited's Growth Numbers

Earnings per share at 1957 & Co. (Hospitality) Limited are much the same as they were three years ago, albeit with slightly higher. It saw its revenue drop 12% over the last year.

We would prefer it if there was revenue growth, but the modest EPSgrowth gives us some relief. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has 1957 & Co. (Hospitality) Limited Been A Good Investment?

Since shareholders would have lost about 57% over three years, some 1957 & Co. (Hospitality) Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, 1957 (Hospitality) pays its CEO in line with similar-sized companies belonging to the same industry. Meanwhile, 1957 (Hospitality) is suffering from adverse shareholder returns and althoughEPS have grown over the past three years, they have not been extraordinary. Although we wouldn't say CEO compensation is exceptionally high, it isn't very low either. Shareholders might want to see substantial improvements in returns before agreeing that Chi Po deserves a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 2 warning signs (and 1 which is significant) in 1957 (Hospitality) we think you should know about.

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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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