Yahoo Finance Is Paradise Entertainment Limited’s (HKG:1180) CEO Being Overpaid?
In 1999 Jay Chun was appointed CEO of Paradise Entertainment Limited (HKG:1180). 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Paradise Entertainment
How Does Jay Chun’s Compensation Compare With Similar Sized Companies?
According to our data, Paradise Entertainment Limited has a market capitalization of HK$947m, and pays its CEO total annual compensation worth HK$13m. (This is based on the year to 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$12m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$1.7m.
As you can see, Jay Chun is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Paradise Entertainment 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 Paradise Entertainment has changed over time.
Is Paradise Entertainment Limited Growing?
On average over the last three years, Paradise Entertainment Limited has grown earnings per share (EPS) by 45% each year. In the last year, its revenue is down -4.1%.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Paradise Entertainment Limited Been A Good Investment?
With a three year total loss of 19%, Paradise Entertainment Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at Paradise Entertainment Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we’d say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Paradise Entertainment shares with their own money (free access).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
