In This Article:
Rocky Poon became the CEO of FSE Services Group Limited (HKG:331) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for FSE Services Group
How Does Rocky Poon's Compensation Compare With Similar Sized Companies?
According to our data, FSE Services Group Limited has a market capitalization of HK$1.6b, and paid its CEO total annual compensation worth HK$7.2m over the year to June 2019. That's a modest increase of 2.8% on the prior year year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.6m. When we examined a selection of companies with market caps ranging from HK$784m to HK$3.1b, we found the median CEO total compensation was HK$2.3m.
It would therefore appear that FSE Services Group Limited pays Rocky Poon 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at FSE Services Group, below.
Is FSE Services Group Limited Growing?
On average over the last three years, FSE Services Group Limited has grown earnings per share (EPS) by 9.8% each year (using a line of best fit). In the last year, its revenue changed by just 0.08%.
I'd prefer higher revenue growth, but I'm happy with the modest EPS growth. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has FSE Services Group Limited Been A Good Investment?
I think that the total shareholder return of 73%, over three years, would leave most FSE Services Group Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We examined the amount FSE Services Group Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.