Roma Group Limited CEO (HKG: 8072) might not expect shareholders to be this generous this year
The results at Roma Group Limited (HKG: 8072) have been quite disappointing recently and CEO Ken Yue bears some responsibility. At the next AGM on September 27, 2021, shareholders will be able to hear the board of directors, including their plans to turn around performance. It will also be an opportunity for them to challenge the board of directors on the direction of the company and to vote on resolutions such as executive compensation. The data we present below explains why we believe CEO compensation is not in line with recent performance.
See our latest analysis for Roma Group
Comparison of Roma Group Limited CEO Compensation with Industry
According to our data, Roma Group Limited has a market capitalization of HK $ 164 million and paid its CEO a total annual compensation of HK $ 2.6 million until March 2021. This is a notable increase. by 15% compared to last year. In particular, the salary of HK $ 2.44 million accounts for a large part of the total compensation paid to the CEO.
Comparing similarly sized companies in the industry with market caps below HK $ 1.6 billion, we found that the median total CEO compensation was HK $ 2.2 million. From this, we infer that Ken Yue is paid around the median of industry CEOs.
|Making up||2021||2020||Proportion (2021)|
|Salary||HK $ 2.4 million||HK $ 2.3 million||94%|
|Other||162,000 HK $||18,000 HK $||6%|
|Total compensation||HK $ 2.6 million||HK $ 2.3 million||100%|
At the industry level, almost 97% of total compensation is salary, while the remainder 3% is other compensation. Roma Group largely reflects the industry average when it comes to the share of a salary in total compensation. If the total compensation is oriented towards the salary, this suggests that the variable part – which is generally linked to performance, is lower.
A look at the growth figures of Roma Group Limited
Roma Group Limited has reduced its earnings per share by 28% per year over the past three years. Over the past year, its turnover has increased by 7.8%.
The drop in BPA is a bit worrying. The modest increase in turnover last year is not enough to forget the disappointing development of EPS. It’s hard to say the company is firing on all cylinders, so shareholders might be averse to high CEO pay. While we don’t have an analyst forecast for the company, shareholders might want to take a look at this detailed historical chart of earnings, income and cash flow.
Has Roma Group Limited been a good investment?
The return of -79% over three years would not have pleased the shareholders of Roma Group Limited. So shareholders would probably want the company to be less generous with CEO compensation.
Along with the poor performance of the company, shareholders have suffered from a low stock price return on their investments, which suggests that there is little or no chance that they are in favor of a raise. CEO salary. At the next AGM, the board of directors will have the opportunity to explain the measures it intends to take to improve the performance of the company.
CEO compensation is an important area to watch, but we also need to pay attention to other attributes of the company. We did our research and identified 4 warning signs (and 2 that make us uncomfortable) in Roma Group, we think you should be aware.
Important note: Roma Group is exciting stock, but we understand that investors can look for an unencumbered balance sheet and exceptional returns. You might find something better in this list of interesting companies with high ROE and low leverage.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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