How Much Is Hi-Level Technology Holdings' (HKG:8113) CEO Getting Paid?

Benson Chang became the CEO of Hi-Level Technology Holdings Limited (HKG:8113) in 2015, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Hi-Level Technology Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Hi-Level Technology Holdings

How Does Total Compensation For Benson Chang Compare With Other Companies In The Industry?

According to our data, Hi-Level Technology Holdings Limited has a market capitalization of HK$196m, and paid its CEO total annual compensation worth HK$1.1m over the year to December 2019. We note that's a decrease of 13% compared to last year. In particular, the salary of HK$985.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. Accordingly, Hi-Level Technology Holdings pays its CEO under the industry median. What's more, Benson Chang holds HK$23m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Talking in terms of the industry, salary represented approximately 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. It's interesting to note that Hi-Level Technology Holdings pays out a greater portion of remuneration through salary, compared to the industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Hi-Level Technology Holdings Limited's Growth Numbers

Hi-Level Technology Holdings Limited has reduced its earnings per share by 25% a year over the last three years. Its revenue is up 30% over the last year.

Investors would be a bit wary of companies that have lower EPS On the other hand, the strong revenue growth suggests the business is growing. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Hi-Level Technology Holdings Limited Been A Good Investment?

Since shareholders would have lost about 47% over three years, some Hi-Level Technology Holdings Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, Hi-Level Technology Holdings pays its CEO lower than the norm for similar-sized companies belonging to the same industry. But Hi-Level Technology Holdings has recorded negative shareholder returns and EPS growth over the last three years. On the flip side, recent revenue growth has been positive. So, although Benson is modestly paid, shareholders might want to see positive shareholder returns before warming to the idea of a raise.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We did our research and identified 3 warning signs (and 1 which is significant) in Hi-Level Technology Holdings we think you should know about.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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