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Is Moiselle International Holdings Limited (HKG:130) Overpaying Its CEO?

The CEO of Moiselle International Holdings Limited (HKG:130) is Yum Kit Chan. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Moiselle International Holdings

How Does Yum Kit Chan's Compensation Compare With Similar Sized Companies?

Our data indicates that Moiselle International Holdings Limited is worth HK$131m, and total annual CEO compensation is HK$5.9m. (This is based on the year to March 2019). That's actually a decrease on the year before. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$5.9m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.9m.

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It would therefore appear that Moiselle International Holdings Limited pays Yum Kit Chan more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at Moiselle International Holdings has changed over time.

SEHK:130 CEO Compensation, August 24th 2019
SEHK:130 CEO Compensation, August 24th 2019

Is Moiselle International Holdings Limited Growing?

Moiselle International Holdings Limited has increased its earnings per share (EPS) by an average of 63% a year, over the last three years (using a line of best fit). It saw its revenue drop -14% over the last year.

This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Moiselle International Holdings Limited Been A Good Investment?

Given the total loss of 63% over three years, many shareholders in Moiselle International 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...

We compared the total CEO remuneration paid by Moiselle International Holdings Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Moiselle International Holdings (free visualization of insider trades).

Important note: Moiselle International Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.