Key Things To Understand About In Technical Productions Holdings' (HKG:8446) CEO Pay Cheque

Dennis Yeung has been the CEO of In Technical Productions Holdings Limited (HKG:8446) since 2016, and this article will examine the executive's compensation 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.

Check out our latest analysis for In Technical Productions Holdings

How Does Total Compensation For Dennis Yeung Compare With Other Companies In The Industry?

Our data indicates that In Technical Productions Holdings Limited has a market capitalization of HK$156m, and total annual CEO compensation was reported as HK$1.5m for the year to May 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$1.20m, makes up a huge portion of the total compensation being paid to the CEO.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.3m. This suggests that In Technical Productions Holdings remunerates its CEO largely in line with the industry average.

Speaking on an industry level, nearly 91% of total compensation represents salary, while the remainder of 9.3% is other remuneration. In In Technical Productions Holdings' 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 In Technical Productions Holdings Limited's Growth Numbers

Over the last three years, In Technical Productions Holdings Limited has shrunk its earnings per share by 73% per year. In the last year, its revenue is down 67%.

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. 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 In Technical Productions Holdings Limited Been A Good Investment?

Since shareholders would have lost about 97% over three years, some In Technical Productions Holdings Limited investors would surely be feeling negative emotions. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As we touched on above, In Technical Productions Holdings Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. On the other hand, EPS growth and total shareholder return have been negative for the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 4 warning signs (and 1 which makes us a bit uncomfortable) in In Technical Productions Holdings we think you should know about.

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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