In 2013 Anthony Lam was appointed CEO of Golden Resources Development International Limited (HKG:677). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Golden Resources Development International
How Does Anthony Lam's Compensation Compare With Similar Sized Companies?
According to our data, Golden Resources Development International Limited has a market capitalization of HK$1.0b, and paid its CEO total annual compensation worth HK$3.8m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.1m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Golden Resources Development International stands. Speaking on an industry level, we can see that nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Golden Resources Development International does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
As you can see, Anthony Lam is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Golden Resources Development International 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. The graphic below shows how CEO compensation at Golden Resources Development International has changed from year to year.
Is Golden Resources Development International Limited Growing?
Golden Resources Development International Limited has reduced its earnings per share by an average of 24% a year, over the last three years (measured with a line of best fit). Its revenue is up 23% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Golden Resources Development International Limited Been A Good Investment?
Boasting a total shareholder return of 38% over three years, Golden Resources Development International Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Golden Resources Development International 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.
We think many shareholders would be underwhelmed with the business growth over the last three years. On the other hand, returns have been good, so the company is doing something right. Given this situation we doubt shareholders are particularly concerned about the CEO compensation. On another note, Golden Resources Development International has 3 warning signs (and 1 which is significant) we think you should know about.
Important note: Golden Resources Development International 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.
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.
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. Thank you for reading.
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Is Golden Resources Development International Limited's (HKG:677) CEO Paid Enough Relative To Peers? - Yahoo Finance
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