How Much Is Ever Harvest Group Holdings Limited (HKG:1549) CEO Getting Paid?

Wallace Lau became the CEO of Ever Harvest Group Holdings Limited (HKG:1549) in 2016, 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 look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Ever Harvest Group Holdings.

See our latest analysis for Ever Harvest Group Holdings

How Does Total Compensation For Wallace Lau Compare With Other Companies In The Industry?

At the time of writing, our data shows that Ever Harvest Group Holdings Limited has a market capitalization of HK$104m, and reported total annual CEO compensation of HK$1.6m for the year to December 2019. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$1.48m, makes up a huge portion of the total compensation being paid to the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$1.6m. This suggests that Ever Harvest Group Holdings remunerates its CEO largely in line with the industry average. Moreover, Wallace Lau also holds HK$3.6m worth of Ever Harvest Group Holdings stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 85% of total compensation represents salary and 15% is other remuneration. Our data reveals that Ever Harvest Group Holdings allocates salary more or less in line with the wider market. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Ever Harvest Group Holdings Limited's Growth

Over the past three years, Ever Harvest Group Holdings Limited has seen its earnings per share (EPS) grow by 107% per year. It achieved revenue growth of 4.8% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. 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 Ever Harvest Group Holdings Limited Been A Good Investment?

Since shareholders would have lost about 69% over three years, some Ever Harvest Group 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 previously discussed, Wallace is compensated close to the median for companies of its size, and which belong to the same industry. At the same time, the company has logged negative shareholder returns over the last three years. But EPS growth is moving in a favorable direction, certainly a positive sign. It's tough for us to say CEO compensation is too generous when EPS growth is positive, but negative investor returns will irk shareholders and reduce any chances of a raise.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 1 which is a bit unpleasant) in Ever Harvest Group 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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