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In 2012 Choong Yew Choy was appointed CEO of G.A. Holdings Limited (HKG:8126). 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. 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.
How Does Choong Yew Choy’s Compensation Compare With Similar Sized Companies?
Our data indicates that G.A. Holdings Limited is worth HK$219m, and total annual CEO compensation is HK$2.0m. (This is based on the year to 2017). Notably, the salary of HK$2.0m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.7m.
That means Choong Yew Choy receives fairly typical remuneration for the CEO of a company that size. 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.
You can see, below, how CEO compensation at G.A. Holdings has changed over time.
Is G.A. Holdings Limited Growing?
Over the last three years G.A. Holdings Limited has shrunk its earnings per share by an average of 31% per year (measured with a line of best fit). It achieved revenue growth of 29% over the last year.
Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. These two metric are moving in different directions, so while it’s hard to be confident judging performance, we think the stock is worth watching. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has G.A. Holdings Limited Been A Good Investment?
Given the total loss of 22% over three years, many shareholders in G.A. Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
Choong Yew Choy is paid around what is normal the leaders of comparable size companies.
We would like to see somewhat stronger per share growth. And we think the shareholder returns – over three years – have been underwhelming. So suffice it to say we don’t think the compensation is modest! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at G.A. Holdings.
If you want to buy a stock that is better than G.A. Holdings, this free list of high return, low debt companies is a great place to look.
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.