Is Hypebeast Limited's (HKG:150) CEO Paid Enough Relative To Peers?
Kevin Ma is the CEO of Hypebeast Limited (HKG:150). 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Hypebeast
How Does Kevin Ma's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Hypebeast Limited has a market cap of HK$2.4b, and reported total annual CEO compensation of HK$1.0m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$409k. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$1.6b to HK$6.2b. The median total CEO compensation was HK$2.7m.
A first glance this seems like a real positive for shareholders, since Kevin Ma is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.
The graphic below shows how CEO compensation at Hypebeast has changed from year to year.
Is Hypebeast Limited Growing?
Over the last three years Hypebeast Limited has grown its earnings per share (EPS) by an average of 51% per year (using a line of best fit). It achieved revenue growth of 64% over the last year.
This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Hypebeast Limited Been A Good Investment?
Boasting a total shareholder return of 594% over three years, Hypebeast 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...
It looks like Hypebeast Limited pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The strong history of shareholder returns might even have some thinking that Kevin Ma deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Hypebeast insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
