In 2015 Carmen Hung was appointed CEO of Get Nice Financial Group Limited (HKG:1469). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. 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.
How Does Carmen Hung's Compensation Compare With Similar Sized Companies?
According to our data, Get Nice Financial Group Limited has a market capitalization of HK$1.7b, and paid its CEO total annual compensation worth HK$1.3m over the year to March 2019. We think total compensation is more important but we note that the CEO salary is lower, at HK$670k. We examined companies with market caps from HK$775m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.3m.
Pay mix tells us a lot about how a company functions versus the wider industry, and it's no different in the case of Get Nice Financial Group. Speaking on an industry level, we can see that nearly 74% of total compensation represents salary, while the remainder of 26% is other remuneration. Readers will want to know that Get Nice Financial Group pays a modest slice of remuneration through salary, as compared to the wider sector.
Most shareholders would consider it a positive that Carmen Hung takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. You can see, below, how CEO compensation at Get Nice Financial Group has changed over time.
Is Get Nice Financial Group Limited Growing?
Get Nice Financial Group Limited has reduced its earnings per share by an average of 45% a year, over the last three years (measured with a line of best fit). It saw its revenue drop 5.7% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Get Nice Financial Group Limited Been A Good Investment?
With a three year total loss of 14%, Get Nice Financial Group Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
It appears that Get Nice Financial Group Limited remunerates its CEO below most similar sized companies.
The compensation paid to Carmen Hung is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. CEO compensation is an important area to keep your eyes on, but we've also identified 3 warning signs for Get Nice Financial Group (1 shouldn't be ignored!) that you should be aware of before investing here.
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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