The CEO of E Lighting Group Holdings Limited (HKG:8222) is Raymond Hui. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for E Lighting Group Holdings
How Does Raymond Hui's Compensation Compare With Similar Sized Companies?
According to our data, E Lighting Group Holdings Limited has a market capitalization of HK$23m, and paid its CEO total annual compensation worth HK$2.3m over the year to March 2019. Notably, the salary of HK$2.3m 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 total compensation was HK$1.8m.
So Raymond Hui receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at E Lighting Group Holdings has changed from year to year.
Is E Lighting Group Holdings Limited Growing?
On average over the last three years, E Lighting Group Holdings Limited has shrunk earnings per share by 9.4% each year (measured with a line of best fit). It saw its revenue drop 9.6% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has E Lighting Group Holdings Limited Been A Good Investment?
Given the total loss of 86% over three years, many shareholders in E Lighting Group Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Raymond Hui is paid around what is normal the leaders of comparable size companies.
Returns have been disappointing and the company is not growing its earnings per share. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves. Whatever your view on compensation, you might want to check if insiders are buying or selling E Lighting Group Holdings shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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