In This Article:
Wilson IP is the CEO of Bonjour Holdings Limited (HKG:653). 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Bonjour Holdings
How Does Wilson IP's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Bonjour Holdings Limited has a market cap of HK$328m, and reported total annual CEO compensation of HK$4.5m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.9m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
As you can see, Wilson IP is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bonjour Holdings Limited is paying too much. 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 Bonjour Holdings has changed over time.
Is Bonjour Holdings Limited Growing?
On average over the last three years, Bonjour Holdings Limited has shrunk earnings per share by 2.7% each year (measured with a line of best fit). Its revenue is down 14% over last year.
Unfortunately there is a complete lack of earnings per share improvement, over three years. And the fact that revenue is down year on year arguably paints an ugly picture. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Bonjour Holdings Limited Been A Good Investment?
With a three year total loss of 72%, Bonjour Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared the total CEO remuneration paid by Bonjour Holdings Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Just as bad, share price gains for investors have failed to materialize, over the same period. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if Bonjour Holdings insiders are buying or selling shares.