In 2001 Feng Hsu was appointed CEO of Tomson Group Limited (HKG:258). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
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How Does Feng Hsu’s Compensation Compare With Similar Sized Companies?
According to our data, Tomson Group Limited has a market capitalization of HK$4.6b, and pays its CEO total annual compensation worth HK$9.9m. (This figure is for the year to 2017). Notably, the salary of HK$9.9m is the vast majority of the CEO compensation. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO compensation was HK$2.4m.
As you can see, Feng Hsu is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Tomson Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Tomson Group has changed over time.
Is Tomson Group Limited Growing?
Over the last three years Tomson Group Limited has grown its earnings per share (EPS) by an average of 34% per year (using a line of best fit). In the last year, its revenue is down -58%.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tomson Group Limited Been A Good Investment?
I think that the total shareholder return of 88%, over three years, would leave most Tomson Group Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We compared total CEO remuneration at Tomson Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Tomson Group.
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
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 firstname.lastname@example.org.