Our Take On Hung Hing Printing Group's (HKG:450) CEO Salary

Matthew Yum is the CEO of Hung Hing Printing Group Limited (HKG:450), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Hung Hing Printing Group.

Check out our latest analysis for Hung Hing Printing Group

How Does Total Compensation For Matthew Yum Compare With Other Companies In The Industry?

At the time of writing, our data shows that Hung Hing Printing Group Limited has a market capitalization of HK$932m, and reported total annual CEO compensation of HK$9.7m for the year to December 2019. That's a notable increase of 19% on last year. In particular, the salary of HK$5.04m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.2m. Hence, we can conclude that Matthew Yum is remunerated higher than the industry median. What's more, Matthew Yum holds HK$50m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 78% of total compensation represents salary, while the remainder of 22% is other remuneration. It's interesting to note that Hung Hing Printing Group allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

A Look at Hung Hing Printing Group Limited's Growth Numbers

Over the past three years, Hung Hing Printing Group Limited has seen its earnings per share (EPS) grow by 1.0% per year. In the last year, its revenue is down 15%.

We generally like to see a little revenue growth, but the modest EPSgrowth gives us some relief. 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 Hung Hing Printing Group Limited Been A Good Investment?

With a three year total loss of 4.8% for the shareholders, Hung Hing Printing Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Matthew is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. The growth in the business has been uninspiring, but the shareholder returns for Hung Hing Printing Group have arguably been worse, over the last three years. This doesn't look great when you consider Matthew is taking home compensation north of the industry average. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.

CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for Hung Hing Printing Group that you should be aware of before investing.

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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