Here's What We Learned About The CEO Pay At New Silkroad Culturaltainment Limited (HKG:472)

Paul Ng is the CEO of New Silkroad Culturaltainment Limited (HKG:472), and in this article, we analyze the executive's compensation package 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.

See our latest analysis for New Silkroad Culturaltainment

How Does Total Compensation For Paul Ng Compare With Other Companies In The Industry?

According to our data, New Silkroad Culturaltainment Limited has a market capitalization of HK$359m, and paid its CEO total annual compensation worth HK$1.6m over the year to December 2019. That's just a smallish increase of 7.2% on last year. Notably, the salary which is HK$1.43m, represents most of the total compensation being paid.

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$701k. Accordingly, our analysis reveals that New Silkroad Culturaltainment Limited pays Paul Ng north of the industry median.

On an industry level, around 90% of total compensation represents salary and 9.5% is other remuneration. New Silkroad Culturaltainment is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

New Silkroad Culturaltainment Limited's Growth

New Silkroad Culturaltainment Limited's earnings per share (EPS) grew 8.0% per year over the last three years. Its revenue is down 24% over the previous year.

We would prefer it if there was revenue growth, but the modest improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has New Silkroad Culturaltainment Limited Been A Good Investment?

Since shareholders would have lost about 87% over three years, some New Silkroad Culturaltainment Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As we touched on above, New Silkroad Culturaltainment 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. The growth in the business has been uninspiring, but the shareholder returns for New Silkroad Culturaltainment have arguably been worse, over the last three years. This doesn't look good when you see that Paul is earning more than the industry median. Taking all this into account, it could be hard to get shareholder support for giving Paul a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for New Silkroad Culturaltainment (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

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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