Sai Chung Lau has been the CEO of China Uptown Group Company Limited (HKG:2330) since 2007. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Sai Chung Lau’s Compensation Compare With Similar Sized Companies?
Our data indicates that China Uptown Group Company Limited is worth HK$290m, and total annual CEO compensation is CN¥2m. That’s actually a decrease on the year before. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO compensation in that group is CN¥2m.
So Sai Chung Lau receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at China Uptown Group has changed from year to year.
Is China Uptown Group Company Limited Growing?
Over the last three years China Uptown Group Company Limited has grown its earnings per share (EPS) by an average of 76% per year. It saw its revenue drop -72% over the last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business. We don’t have analyst forecasts, but you might want to assess this free data-rich visualization of earnings, revenue and cash flow.
Has China Uptown Group Company Limited Been A Good Investment?
Since shareholders would have lost about 59% over three years, some China Uptown Group Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Sai Chung Lau is paid around the same as most CEOs of similar size companies.
We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. This article has given you an idea about how to analyse CEO remuneration, but it’s important to look at other leaders in the company, too. So it makes sense to check how long the Board of Directors has been in place.
If you would prefer check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.