Hoo Win Cheung became the CEO of Styland Holdings Limited (HKG:211) in 2009, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Styland Holdings.
See our latest analysis for Styland Holdings
Comparing Styland Holdings Limited's CEO Compensation With the industry
Our data indicates that Styland Holdings Limited has a market capitalization of HK$246m, and total annual CEO compensation was reported as HK$688k for the year to March 2020. That is, the compensation was roughly the same as last year. We note that the salary portion, which stands at HK$618.0k 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$1.3m. In other words, Styland Holdings pays its CEO lower than the industry median.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$618k | HK$578k | 90% |
| Other | HK$70k | HK$90k | 10% |
| Total Compensation | HK$688k | HK$668k | 100% |
On an industry level, roughly 77% of total compensation represents salary and 23% is other remuneration. Styland Holdings pays out 90% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Styland Holdings Limited's Growth
Over the last three years, Styland Holdings Limited has shrunk its earnings per share by 27% per year. It saw its revenue drop 41% 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. 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 Styland Holdings Limited Been A Good Investment?
Since shareholders would have lost about 70% over three years, some Styland Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
As previously discussed, Hoo Win is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. Over the last three years, shareholder returns have been downright disappointing, and EPSgrowth has been equally disappointing. It's tough to say that Hoo Win is earning a very high compensation, but shareholders will likely want to see healthier investor returns before agreeing that a raise is in order.
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 7 warning signs (and 2 which can't be ignored) in Styland Holdings we think you should know about.
Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.
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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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About SEHK:211
Styland Holdings
An investment holding company, provides various financial services in Hong Kong.
Moderate and overvalued.
