How Much Is Oriental Press Group Limited (HKG:18) CEO Getting Paid?
Shun-Chuen Lam is the CEO of Oriental Press Group Limited (HKG:18), 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.
Check out our latest analysis for Oriental Press Group
Comparing Oriental Press Group Limited's CEO Compensation With the industry
At the time of writing, our data shows that Oriental Press Group Limited has a market capitalization of HK$1.1b, and reported total annual CEO compensation of HK$2.7m for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary of HK$2.7m is the entirety of the CEO compensation.
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$2.6m. This suggests that Oriental Press Group remunerates its CEO largely in line with the industry average.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$2.7m | HK$2.7m | 100% |
| Other | - | - | - |
| Total Compensation | HK$2.7m | HK$2.7m | 100% |
On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Speaking on a company level, Oriental Press Group prefers to tread along a traditional path, disbursing all compensation through a salary. 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 Oriental Press Group Limited's Growth Numbers
Oriental Press Group Limited has reduced its earnings per share by 40% a year over the last three years. Its revenue is down 18% over the previous year.
The decline in EPS is a bit concerning. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Oriental Press Group Limited Been A Good Investment?
Since shareholders would have lost about 26% over three years, some Oriental Press Group Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.
To Conclude...
Oriental Press Group pays CEO compensation exclusively through a salary, with non-salary compensation completely ignored. As previously discussed, Shun-Chuen is compensated close to the median for companies of its size, and which belong to the same industry. On the other hand, EPS growth and total shareholder return have been negative for the last three years. It's tough to call out the compensation as inappropriate, but shareholders might not favor a raise before company performance improves.
It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. That's why we did our research, and identified 4 warning signs for Oriental Press Group (of which 1 doesn't sit too well with us!) that you should know about in order to have a holistic understanding of the stock.
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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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:18
Oriental Enterprise Holdings
An investment holding company, engages in the publication of newspapers in Hong Kong and Australia.
Excellent balance sheet and fair value.
