How Is San Miguel Brewery Hong Kong's (HKG:236) CEO Compensated?
Filipin Torralba has been the CEO of San Miguel Brewery Hong Kong Limited (HKG:236) since 2013, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether San Miguel Brewery Hong Kong pays its CEO appropriately, considering recent earnings growth and total shareholder returns.
View our latest analysis for San Miguel Brewery Hong Kong
How Does Total Compensation For Filipin Torralba Compare With Other Companies In The Industry?
Our data indicates that San Miguel Brewery Hong Kong Limited has a market capitalization of HK$299m, and total annual CEO compensation was reported as HK$2.8m for the year to December 2019. That's a fairly small increase of 5.0% over the previous year. Notably, the salary of HK$2.8m is the entirety of the CEO compensation.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$455k. Hence, we can conclude that Filipin Torralba is remunerated higher than the industry median.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | HK$2.8m | HK$2.6m | 100% |
| Other | - | - | - |
| Total Compensation | HK$2.8m | HK$2.6m | 100% |
On an industry level, around 90% of total compensation represents salary and 9.5% is other remuneration. On a company level, San Miguel Brewery Hong Kong prefers to reward its CEO through a salary, opting not to pay Filipin Torralba through 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 San Miguel Brewery Hong Kong Limited's Growth Numbers
San Miguel Brewery Hong Kong Limited has seen its earnings per share (EPS) increase by 64% a year over the past three years. It saw its revenue drop 4.7% over the last year.
This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has San Miguel Brewery Hong Kong Limited Been A Good Investment?
Given the total shareholder loss of 32% over three years, many shareholders in San Miguel Brewery Hong Kong Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
San Miguel Brewery Hong Kong pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Filipin is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. But the company has impressed with its EPS growth, but shareholder returns — over the same period — have been disappointing. Although we don't think the CEO pay is too high, considering negative investor returns, it is more generous than modest.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We've identified 1 warning sign for San Miguel Brewery Hong Kong that investors should be aware of in a dynamic business environment.
Switching gears from San Miguel Brewery Hong Kong, 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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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:236
San Miguel Brewery Hong Kong
Manufactures and distributes bottled, canned, and draught beers in Hong Kong, Mainland China, and internationally.
Flawless balance sheet average dividend payer.
