How Much Is Reliance Global Holdings' (HKG:723) CEO Getting Paid?

This article will reflect on the compensation paid to Ming Wai Lai who has served as CEO of Reliance Global Holdings Limited (HKG:723) since 2018. This analysis will also assess whether Reliance Global Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Reliance Global Holdings

How Does Total Compensation For Ming Wai Lai Compare With Other Companies In The Industry?

According to our data, Reliance Global Holdings Limited has a market capitalization of HK$219m, and paid its CEO total annual compensation worth HK$1.1m over the year to March 2020. Notably, that's an increase of 22% over the year before. We note that the salary portion, which stands at HK$1.02m constitutes the majority of total compensation received by 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$690k. Hence, we can conclude that Ming Wai Lai is remunerated higher than the industry median.

On an industry level, around 91% of total compensation represents salary and 8.5% is other remuneration. Reliance Global Holdings pays a high salary, concentrating more on this aspect of compensation in comparison to non-salary pay. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Reliance Global Holdings Limited's Growth

Reliance Global Holdings Limited's earnings per share (EPS) grew 46% per year over the last three years. In the last year, its revenue is up 74%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. 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 Reliance Global Holdings Limited Been A Good Investment?

With a three year total loss of 29% for the shareholders, Reliance Global Holdings Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

Reliance Global Holdings pays its CEO a majority of compensation through a salary. As we noted earlier, Reliance Global Holdings pays its CEO higher than the norm for similar-sized companies belonging 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.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 2 warning signs (and 1 which doesn't sit too well with us) in Reliance Global Holdings we think you should know about.

Switching gears from Reliance Global Holdings, 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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