Here's What We Think About Media Chinese International's (HKG:685) CEO Pay

Francis Tiong has been the CEO of Media Chinese International Limited (HKG:685) since 2005, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also assess whether Media Chinese International pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Media Chinese International

Comparing Media Chinese International Limited's CEO Compensation With the industry

Our data indicates that Media Chinese International Limited has a market capitalization of HK$464m, and total annual CEO compensation was reported as HK$3.6m for the year to March 2020. This means that the compensation hasn't changed much from last year. Notably, the salary which is HK$2.62m, represents most of the total compensation being paid.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.6m. This suggests that Francis Tiong is paid more than the median for the industry. Furthermore, Francis Tiong directly owns HK$1.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 84% of total compensation out of all the companies we analyzed, while other remuneration made up 16% of the pie. In Media Chinese International's case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. 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 Media Chinese International Limited's Growth Numbers

Media Chinese International Limited's earnings per share (EPS) grew 13% per year over the last three years. It saw its revenue drop 43% over the last year.

This demonstrates that the company has been improving recently and is good news for the shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Media Chinese International Limited Been A Good Investment?

With a three year total loss of 53% for the shareholders, Media Chinese International Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As previously discussed, Francis is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth is certainly impressive, but it's disappointing to see negative shareholder returns over the same period. Although we'd stop short of calling it inappropriate, we think Francis is earning a very handsome sum.

CEO compensation can have a massive impact on performance, but it's just one element. We did our research and spotted 1 warning sign for Media Chinese International that investors should look into moving forward.

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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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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