What Did Emperor Capital Group's (HKG:717) CEO Take Home Last Year?

The CEO of Emperor Capital Group Limited (HKG:717) is Daisy Yeung, and this article examines 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 Emperor Capital Group.

Check out our latest analysis for Emperor Capital Group

How Does Total Compensation For Daisy Yeung Compare With Other Companies In The Industry?

According to our data, Emperor Capital Group Limited has a market capitalization of HK$1.2b, and paid its CEO total annual compensation worth HK$1.8m over the year to September 2020. We note that's a decrease of 52% compared to last year. Notably, the salary which is HK$1.49m, represents most of the total compensation being paid.

For comparison, other companies in the same industry with market capitalizations ranging between HK$775m and HK$3.1b had a median total CEO compensation of HK$1.8m. So it looks like Emperor Capital Group compensates Daisy Yeung in line with the median for the industry. Moreover, Daisy Yeung also holds HK$3.3m worth of Emperor Capital Group 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 86% of total compensation represents salary, while the remainder of 14% is other remuneration. There isn't a significant difference between Emperor Capital Group 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 Emperor Capital Group Limited's Growth Numbers

Over the last three years, Emperor Capital Group Limited has shrunk its earnings per share by 111% per year. Its revenue is down 9.6% over the previous year.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Emperor Capital Group Limited Been A Good Investment?

With a three year total loss of 68% for the shareholders, Emperor Capital Group Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we touched on above, Emperor Capital Group 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. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Emperor Capital Group you should be aware of, and 2 of them can't be ignored.

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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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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