In This Article:
Ken Yeung has been the CEO of TOM Group Limited (HKG:2383) since 2008. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. 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.
View our latest analysis for TOM Group
How Does Ken Yeung's Compensation Compare With Similar Sized Companies?
Our data indicates that TOM Group Limited is worth HK$4.9b, and total annual CEO compensation was reported as HK$6.0m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$5.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$3.1b to HK$13b. The median total CEO compensation was HK$3.4m.
As you can see, Ken Yeung is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean TOM Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at TOM Group, below.
Is TOM Group Limited Growing?
TOM Group Limited has increased its earnings per share (EPS) by an average of 12% a year, over the last three years (using a line of best fit). It saw its revenue drop 3.2% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has TOM Group Limited Been A Good Investment?
Given the total loss of 37% over three years, many shareholders in TOM Group Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We compared total CEO remuneration at TOM Group Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. Having said that, shareholders may be disappointed with the weak returns over the last three years. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. So you may want to check if insiders are buying TOM Group shares with their own money (free access).