Yahoo Finanza Does Telecom Digital Holdings Limited's (HKG:6033) CEO Pay Compare Well With Peers?
Sunny Cheung has been the CEO of Telecom Digital Holdings Limited (HKG:6033) since 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Telecom Digital Holdings
How Does Sunny Cheung's Compensation Compare With Similar Sized Companies?
Our data indicates that Telecom Digital Holdings Limited is worth HK$808m, and total annual CEO compensation was reported as HK$1.6m for the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$1.6m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On an industry level, roughly 90% of total compensation represents salary and 9.9% is other remuneration. Telecom Digital Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits.
So Sunny Cheung is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance. The graphic below shows how CEO compensation at Telecom Digital Holdings has changed from year to year.
Is Telecom Digital Holdings Limited Growing?
Over the last three years Telecom Digital Holdings Limited has seen earnings per share (EPS) move in a positive direction by an average of 9.6% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.
I would prefer it if there was revenue growth, but the improvement in EPS is good. It's hard to reach a conclusion about business performance right now. This may be one to watch. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Telecom Digital Holdings Limited Been A Good Investment?
Given the total loss of 21% over three years, many shareholders in Telecom Digital Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Sunny Cheung is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So many would argue that the CEO is certainly not underpaid. On another note, we've spotted 3 warning signs for Telecom Digital Holdings that investors should look into moving forward.
If you want to buy a stock that is better than Telecom Digital Holdings, this free list of high return, low debt companies is a great place to look.
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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.
