How Much Did Global Mastermind Capital's (HKG:905) CEO Pocket Last Year?

This article will reflect on the compensation paid to Alan Mung who has served as CEO of Global Mastermind Capital Limited (HKG:905) since 2015. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Global Mastermind Capital.

Check out our latest analysis for Global Mastermind Capital

Comparing Global Mastermind Capital Limited's CEO Compensation With the industry

According to our data, Global Mastermind Capital Limited has a market capitalization of HK$53m, and paid its CEO total annual compensation worth HK$4.3m over the year to December 2019. This means that the compensation hasn't changed much from last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at HK$330k.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. This suggests that Alan Mung is paid more than the median for the industry.

On an industry level, around 77% of total compensation represents salary and 23% is other remuneration. Global Mastermind Capital pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

Global Mastermind Capital Limited's Growth

Over the last three years, Global Mastermind Capital Limited has shrunk its earnings per share by 62% per year. Its revenue is up 72% over the last year.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Global Mastermind Capital Limited Been A Good Investment?

With a three year total loss of 72% for the shareholders, Global Mastermind Capital Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Global Mastermind Capital pays its CEO higher than the norm for similar-sized companies belonging to the same industry. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. In contrast, revenue growth for the company has been showing a positive trend. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 4 warning signs for Global Mastermind Capital you should be aware of, and 3 of them are concerning.

Switching gears from Global Mastermind Capital, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.

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