What Can We Learn About Emperor International Holdings' (HKG:163) CEO Compensation?

Bryan Wong is the CEO of Emperor International Holdings Limited (HKG:163), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Emperor International Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Emperor International Holdings

How Does Total Compensation For Bryan Wong Compare With Other Companies In The Industry?

According to our data, Emperor International Holdings Limited has a market capitalization of HK$4.2b, and paid its CEO total annual compensation worth HK$5.6m over the year to March 2020. That's a notable decrease of 36% on last year. In particular, the salary of HK$4.73m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between HK$1.6b and HK$6.2b, we discovered that the median CEO total compensation of that group was HK$3.6m. This suggests that Bryan Wong is paid more than the median for the industry.

Speaking on an industry level, nearly 70% of total compensation represents salary, while the remainder of 30% is other remuneration. Emperor International Holdings pays out 85% of remuneration in the form of a salary, significantly higher than the industry average. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Emperor International Holdings Limited's Growth

Over the last three years, Emperor International Holdings Limited has shrunk its earnings per share by 69% per year. Its revenue is down 46% over the previous year.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Emperor International Holdings Limited Been A Good Investment?

Given the total shareholder loss of 48% over three years, many shareholders in Emperor International Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As we touched on above, Emperor International Holdings Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Disappointingly, share price gains over the last three years have failed to materialize. To make matters worse, EPS growth has also been negative during this period. Understandably, the company's shareholders might have some questions about the CEO's remuneration, given the disappointing performance.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We identified 2 warning signs for Emperor International Holdings (1 is potentially serious!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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