Does Modern Healthcare Technology Holdings' (HKG:919) CEO Salary Compare Well With Industry Peers?

Joyce Tsang has been the CEO of Modern Healthcare Technology Holdings Limited (HKG:919) since 2010, and this article will examine the executive's compensation 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.

Check out our latest analysis for Modern Healthcare Technology Holdings

How Does Total Compensation For Joyce Tsang Compare With Other Companies In The Industry?

According to our data, Modern Healthcare Technology Holdings Limited has a market capitalization of HK$106m, and paid its CEO total annual compensation worth HK$9.9m over the year to March 2020. That's mostly flat as compared to the prior year's compensation. Notably, the salary which is HK$9.82m, represents most of the total compensation being paid.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.4m. Hence, we can conclude that Joyce Tsang is remunerated higher than the industry median. What's more, Joyce Tsang holds HK$79m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 90% of total compensation represents salary and 9.7% is other remuneration. Modern Healthcare Technology Holdings 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.

A Look at Modern Healthcare Technology Holdings Limited's Growth Numbers

Modern Healthcare Technology Holdings Limited's earnings per share (EPS) grew 22% per year over the last three years. It saw its revenue drop 22% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Modern Healthcare Technology Holdings Limited Been A Good Investment?

Given the total shareholder loss of 57% over three years, many shareholders in Modern Healthcare Technology Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Joyce receives almost all of their compensation through a salary. As we touched on above, Modern Healthcare Technology Holdings Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. However, the EPS growth is certainly impressive, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say Joyce is underpaid, in fact compensation is definitely on the higher side.

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 identified 3 warning signs for Modern Healthcare Technology Holdings (1 is potentially serious!) that you should be aware of before investing here.

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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