Our View On Gameone Holdings' (HKG:8282) CEO Pay

Kin Fai Lam is the CEO of Gameone Holdings Limited (HKG:8282), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Gameone Holdings.

View our latest analysis for Gameone Holdings

Comparing Gameone Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Gameone Holdings Limited has a market capitalization of HK$39m, and reported total annual CEO compensation of HK$642k for the year to December 2019. That's a slightly lower by 4.5% over the previous year. Notably, the salary which is HK$624.0k, 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$1.4m. This suggests that Kin Fai Lam is paid below the industry median.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. Investors will find it interesting that Gameone Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Gameone Holdings Limited's Growth Numbers

Over the past three years, Gameone Holdings Limited has seen its earnings per share (EPS) grow by 29% per year. It saw its revenue drop 42% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. While it would be good to see revenue growth, profits matter more in the end. 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 Gameone Holdings Limited Been A Good Investment?

Since shareholders would have lost about 84% over three years, some Gameone Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

Kin Fai receives almost all of their compensation through a salary. As we noted earlier, Gameone Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. However, the EPS growth over three years is certainly impressive. Although we would've liked to see positive investor returns, it would be bold of us to criticize CEO compensation when EPS are up. But we believe shareholders would want to see healthier returns before the CEO gets a raise.

CEO compensation can have a massive impact on performance, but it's just one element. We've identified 2 warning signs for Gameone Holdings that investors should be aware of in a dynamic business environment.

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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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