Does G-Vision International (Holdings) Limited's (HKG:657) CEO Pay Compare Well With Peers?
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The CEO of G-Vision International (Holdings) Limited (HKG:657) is Hop Fai Cheng. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for G-Vision International (Holdings)
How Does Hop Fai Cheng's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that G-Vision International (Holdings) Limited has a market cap of HK$195m, and is paying total annual CEO compensation of HK$2.6m. (This is based on the year to March 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$2.3m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.5m.
Thus we can conclude that Hop Fai Cheng receives more in total compensation than the median of a group of companies in the same market, and of similar size to G-Vision International (Holdings) Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at G-Vision International (Holdings) has changed from year to year.
Is G-Vision International (Holdings) Limited Growing?
Over the last three years G-Vision International (Holdings) Limited has grown its earnings per share (EPS) by an average of 1.3% per year (using a line of best fit). In the last year, its revenue is up 6.8%.
I'd prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has G-Vision International (Holdings) Limited Been A Good Investment?
With a three year total loss of 78%, G-Vision International (Holdings) Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at G-Vision International (Holdings) Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Over the last three years, shareholder returns have been downright disappointing, and the underlying business has failed to impress us. Shareholders may wish to consider further research. Although we don't think the CEO pay is too high, it is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling G-Vision International (Holdings) (free visualization of insider trades).
If you want to buy a stock that is better than G-Vision International (Holdings), this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
