The CEO of Mei Ah Entertainment Group Limited (HKG:391) is Hing Chi Tong. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Mei Ah Entertainment Group
How Does Hing Chi Tong's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Mei Ah Entertainment Group Limited has a market cap of HK$1.7b, and is paying total annual CEO compensation of HK$2.1m. (This number is for the twelve months until March 2018). Notably, the salary of HK$2.1m is the vast majority of the CEO compensation. We examined companies with market caps from HK$785m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$1.7m.
That means Hing Chi Tong receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Mei Ah Entertainment Group has changed from year to year.
Is Mei Ah Entertainment Group Limited Growing?
On average over the last three years, Mei Ah Entertainment Group Limited has shrunk earnings per share by 1.8% each year (measured with a line of best fit). It achieved revenue growth of 34% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metric are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. 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 Mei Ah Entertainment Group Limited Been A Good Investment?
With a three year total loss of 55%, Mei Ah Entertainment Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Hing Chi Tong is paid around the same as most CEOs of similar size companies.
The per share growth could be better, in our view. And shareholder returns have been disappointing over the last three years. So suffice it to say we don't think the compensation is modest! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Mei Ah Entertainment Group (free visualization of insider trades).
If you want to buy a stock that is better than Mei Ah Entertainment Group, this freelist of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.