How Does Future Data Group's (HKG:8229) CEO Salary Compare to Peers?
Seung Han Lee is the CEO of Future Data Group Limited (HKG:8229), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
See our latest analysis for Future Data Group
How Does Total Compensation For Seung Han Lee Compare With Other Companies In The Industry?
According to our data, Future Data Group Limited has a market capitalization of HK$44m, and paid its CEO total annual compensation worth HK$2.4m over the year to December 2019. That's a notable increase of 52% on last year. We note that the salary portion, which stands at HK$1.44m constitutes the majority of total compensation received by the CEO.
On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.9m. This suggests that Future Data Group remunerates its CEO largely in line with the industry average.
| Component | 2019 | 2018 | Proportion (2019) |
| Salary | HK$1.4m | HK$1.3m | 60% |
| Other | HK$957k | HK$291k | 40% |
| Total Compensation | HK$2.4m | HK$1.6m | 100% |
On an industry level, around 60% of total compensation represents salary and 40% is other remuneration. There isn't a significant difference between Future Data Group and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
Future Data Group Limited's Growth
Future Data Group Limited has reduced its earnings per share by 5.5% a year over the last three years. It saw its revenue drop 3.1% over the last year.
Few shareholders would be pleased to read that EPS have declined. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Future Data Group Limited Been A Good Investment?
Given the total shareholder loss of 64% over three years, many shareholders in Future Data Group Limited are probably rather dissatisfied, to say the least. So shareholders would probably want the company to be lessto generous with CEO compensation.
In Summary...
As we touched on above, Future Data Group Limited is currently paying a compensation that's close to the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. In the meantime, the company has reported declining EPS growth and shareholder returns over the last three years. We'd stop short of saying compensation is inappropriate, but we would understand if shareholders had questions regarding a future raise.
CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 3 warning signs for Future Data Group (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.
Important note: Future Data Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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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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About SEHK:8229
Future Data Group
An investment holding company, provides system integration and maintenance services in South Korea, Singapore, Vietnam and Hong Kong.
Excellent balance sheet and good value.
