There Could Be A Chance IGG Inc's (HKG:799) CEO Will Have Their Compensation Increased

Shareholders will probably not be disappointed by the robust results at IGG Inc (HKG:799) recently and they will be keeping this in mind as they go into the AGM on 06 May 2021. They will probably be more interested in hearing the board discuss future initiatives to further improve the business as they vote on resolutions such as executive remuneration. Here is our take on why we think CEO compensation is fair and may even warrant a raise.

View our latest analysis for IGG

How Does Total Compensation For Duke Cai Compare With Other Companies In The Industry?

According to our data, IGG Inc has a market capitalization of HK$16b, and paid its CEO total annual compensation worth US$695k over the year to December 2020. That's slightly lower by 4.0% over the previous year. We note that the salary portion, which stands at US$514.0k constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the same industry with market caps ranging from HK$7.8b to HK$25b, we found that the median CEO total compensation was US$1.8m. That is to say, Duke Cai is paid under the industry median. Moreover, Duke Cai also holds HK$2.8b worth of IGG stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component	2020	2019	Proportion (2020)
Salary	US$514k	US$509k	74%
Other	US$181k	US$215k	26%
Total Compensation	US$695k	US$724k	100%

Talking in terms of the industry, salary represented approximately 89% of total compensation out of all the companies we analyzed, while other remuneration made up 11% of the pie. It's interesting to note that IGG allocates a smaller portion of compensation to salary in comparison to the broader industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

IGG Inc's Growth

IGG Inc has seen its earnings per share (EPS) increase by 24% a year over the past three years. In the last year, its revenue is up 5.5%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has IGG Inc Been A Good Investment?

IGG Inc has generated a total shareholder return of 31% over three years, so most shareholders would be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

While the company seems to be headed in the right direction performance-wise, there's always room for improvement. If it continues on the same road, shareholders might feel even more confident about their investment, and have little to no objections concerning CEO pay. In fact, strategic decisions that could impact the future of the business might be a far more interesting topic for investors as it would help them set their longer-term expectations.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We identified 4 warning signs for IGG (2 are significant!) that you should be aware of before investing here.

Switching gears from IGG, 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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