Does Bossini International Holdings Limited's (HKG:592) CEO Pay Matter?

In 2010 Edmund Mak was appointed CEO of Bossini International Holdings Limited (HKG:592). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.

Check out our latest analysis for Bossini International Holdings

How Does Edmund Mak's Compensation Compare With Similar Sized Companies?

According to our data, Bossini International Holdings Limited has a market capitalization of HK$451m, and pays its CEO total annual compensation worth HK$4.8m. (This number is for the twelve months until June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.5m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.5m.

As you can see, Edmund Mak is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Bossini International Holdings 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, below, how CEO compensation at Bossini International Holdings has changed over time.

Is Bossini International Holdings Limited Growing?

On average over the last three years, Bossini International Holdings Limited has shrunk earnings per share by 92% each year (measured with a line of best fit). Its revenue is down -5.7% over last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Bossini International Holdings Limited Been A Good Investment?

Given the total loss of 32% over three years, many shareholders in Bossini International Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared the total CEO remuneration paid by Bossini International 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.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Bossini International Holdings shares (free trial).

Important note: Bossini International Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.