Yahoo Finance Should You Be Pleased About The CEO Pay At Neo Telemedia Limited's (HKG:8167)
Sing Tai Cheung became the CEO of Neo Telemedia Limited (HKG:8167) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Neo Telemedia
How Does Sing Tai Cheung's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Neo Telemedia Limited has a market cap of HK$1.2b, and reported total annual CEO compensation of HK$1.5m for the year to December 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at HK$1.2m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$775m to HK$3.1b. The median total CEO compensation was HK$2.3m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Neo Telemedia stands. On a sector level, around 78% of total compensation represents salary and 22% is other remuneration. Our data reveals that Neo Telemedia allocates salary in line with the wider market.
Most shareholders would consider it a positive that Sing Tai Cheung takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion. You can see a visual representation of the CEO compensation at Neo Telemedia, below.
Is Neo Telemedia Limited Growing?
On average over the last three years, Neo Telemedia Limited has shrunk earnings per share by 101% each year (measured with a line of best fit). It saw its revenue drop 61% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the impression is worse when you consider revenue is down year-on-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 Neo Telemedia Limited Been A Good Investment?
With a three year total loss of 52%, Neo Telemedia Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like Neo Telemedia Limited pays its CEO less than similar sized companies.
The compensation paid to Sing Tai Cheung is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. Taking a breather from CEO compensation, we've spotted 2 warning signs for Neo Telemedia (of which 1 makes us a bit uncomfortable!) you should know about in order to have a holistic understanding of the stock.
Important note: Neo Telemedia 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.
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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. Thank you for reading.
