Does EGL Holdings Company Limited's (HKG:6882) CEO Pay Reflect Performance?

In This Article:

Man Ying Yuen is the CEO of EGL Holdings Company Limited (HKG:6882). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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 EGL Holdings

How Does Man Ying Yuen's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that EGL Holdings Company Limited has a market cap of HK$266m, and reported total annual CEO compensation of HK$3.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$2.0m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.

It would therefore appear that EGL Holdings Company Limited pays Man Ying Yuen more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at EGL Holdings has changed over time.

SEHK:6882 CEO Compensation, November 5th 2019
SEHK:6882 CEO Compensation, November 5th 2019

Is EGL Holdings Company Limited Growing?

Over the last three years EGL Holdings Company Limited has shrunk its earnings per share by an average of 29% per year (measured with a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue is seriously uninspiring. 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 EGL Holdings Company Limited Been A Good Investment?

Since shareholders would have lost about 59% over three years, some EGL Holdings Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by EGL Holdings Company Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.