Yahoo Finance Should You Be Pleased About The CEO Pay At Styland Holdings Limited's (HKG:211)
In 2009, Hoo Win Cheung was appointed CEO of Styland Holdings Limited (HKG:211). 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. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Styland Holdings
How Does Hoo Win Cheung's Compensation Compare With Similar Sized Companies?
Our data indicates that Styland Holdings Limited is worth HK$136m, and total annual CEO compensation was reported as HK$668k for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$578k. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 75% of total compensation represents salary, while the remainder of 25% is other remuneration. Styland Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
At first glance this seems like a real positive for shareholders, since Hoo Win Cheung is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Styland Holdings has changed over time.
Is Styland Holdings Limited Growing?
Over the last three years Styland Holdings Limited has shrunk its earnings per share by an average of 33% per year (measured with a line of best fit). It saw its revenue drop 15% over the last year.
Sadly for shareholders, earnings per share are actually down, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Styland Holdings Limited Been A Good Investment?
Since shareholders would have lost about 87% over three years, some Styland Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Styland Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Hoo Win Cheung is paid less than CEOs of similar size companies, but the company isn't growing and total shareholder returns have been disappointing. Considering all these factors, we'd stop short of saying the CEO pay is too high, but we don't think shareholders would want to see a pay rise before business performance improves. Shifting gears from CEO pay for a second, we've spotted 6 warning signs for Styland Holdings you should be aware of, and 1 of them can't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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