Key Insights

• Pico Far East Holdings will host its Annual General Meeting on 18th of March
• Total pay for CEO Lawrence Chia includes HK$8.02m salary
• Total compensation is 417% above industry average
• Pico Far East Holdings' EPS grew by 65% over the past three years while total shareholder return over the past three years was 57%

Performance at Pico Far East Holdings Limited (HKG:752) has been reasonably good and CEO Lawrence Chia has done a decent job of steering the company in the right direction. In light of this performance, CEO compensation will probably not be the main focus for shareholders as they go into the AGM on 18th of March. However, some shareholders may still want to keep CEO compensation within reason.

How Does Total Compensation For Lawrence Chia Compare With Other Companies In The Industry?

According to our data, Pico Far East Holdings Limited has a market capitalization of HK$2.2b, and paid its CEO total annual compensation worth HK$15m over the year to October 2023. This means that the compensation hasn't changed much from last year. We note that the salary of HK$8.02m makes up a sizeable portion of the total compensation received by the CEO.

In comparison with other companies in the Hong Kong Media industry with market capitalizations ranging from HK$782m to HK$3.1b, the reported median CEO total compensation was HK$2.9m. Accordingly, our analysis reveals that Pico Far East Holdings Limited pays Lawrence Chia north of the industry median. Furthermore, Lawrence Chia directly owns HK$3.2m worth of shares in the company, implying that they are deeply invested in the company's success.

Speaking on an industry level, nearly 86% of total compensation represents salary, while the remainder of 14% is other remuneration. Pico Far East Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Pico Far East Holdings Limited's Growth Numbers

Pico Far East Holdings Limited's earnings per share (EPS) grew 65% per year over the last three years. Its revenue is up 17% over the last year.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. 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 Pico Far East Holdings Limited Been A Good Investment?

We think that the total shareholder return of 57%, over three years, would leave most Pico Far East Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

To Conclude...

Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, any decision to raise CEO pay might be met with some objections from the shareholders given that the CEO is already paid higher than the industry average.

CEO pay is simply one of the many factors that need to be considered while examining business performance. That's why we did our research, and identified 2 warning signs for Pico Far East Holdings (of which 1 is significant!) that you should know about in order to have a holistic understanding of the stock.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.