How Should Investors Feel About Oriental Press Group's (HKG:18) CEO Remuneration?

By
Simply Wall St
Published
September 28, 2020
SEHK:18

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.

View our latest analysis for Oriental Press Group

How Does Total Compensation For Shun-Chuen Lam Compare With Other Companies In The Industry?

At the time of writing, our data shows that Oriental Press Group Limited has a market capitalization of HK$959m, and reported total annual CEO compensation of HK$2.7m for the year to March 2020. That is, the compensation was roughly the same as last year. Notably, the salary of HK$2.7m 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$2.7m. From this we gather that Shun-Chuen Lam is paid around the median for CEOs in the industry.

Component20202019Proportion (2020)
Salary HK$2.7m HK$2.7m 100%
Other - - -
Total CompensationHK$2.7m HK$2.7m100%

Talking in terms of the industry, salary represented approximately 77% of total compensation out of all the companies we analyzed, while other remuneration made up 23% of the pie. At the company level, Oriental Press Group pays Shun-Chuen Lam solely through a salary, preferring to go down a conventional route. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
SEHK:18 CEO Compensation September 29th 2020

A Look at Oriental Press Group Limited's Growth Numbers

Over the last three years, Oriental Press Group Limited has shrunk its earnings per share by 48% per year. In the last year, its revenue is down 8.5%.

The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Oriental Press Group Limited Been A Good Investment?

Given the total shareholder loss of 44% over three years, many shareholders in Oriental Press Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

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. Meanwhile, EPS growth and shareholder returns have been in the red 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.

If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Oriental Press Group.

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.

Promoted
If you’re looking to trade Oriental Press Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account.


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is a financial technology startup focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of equity analysts with a public, market-beating track record. Learn more about the team behind Simply Wall St.