Is New Trend Lifestyle Group Plc's (LON:NTLG) CEO Paid Enough Relative To Peers? - Yahoo Finance

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Hillary Hua is the CEO of New Trend Lifestyle Group Plc (LON:NTLG). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for New Trend Lifestyle Group

How Does Hillary Hua's Compensation Compare With Similar Sized Companies?

Our data indicates that New Trend Lifestyle Group Plc is worth UK£525k, and total annual CEO compensation is S$617k. (This figure is for the year to December 2017). Notably, the salary of S$600k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under S$272m, and the median CEO total compensation was S$423k.

It would therefore appear that New Trend Lifestyle Group Plc pays Hillary Hua more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see, below, how CEO compensation at New Trend Lifestyle Group has changed over time.

AIM:NTLG CEO Compensation, May 1st 2019

Is New Trend Lifestyle Group Plc Growing?

On average over the last three years, New Trend Lifestyle Group Plc has shrunk earnings per share by 10.0% each year (measured with a line of best fit). It achieved revenue growth of 29% over the last year.

Investors should note that, over three years, earnings per share are down. On the other hand, the strong revenue growth suggests the business is growing. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has New Trend Lifestyle Group Plc Been A Good Investment?

Since shareholders would have lost about 60% over three years, some New Trend Lifestyle Group Plc shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

We compared total CEO remuneration at New Trend Lifestyle Group Plc with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

While we have not been overly impressed by the business performance, the shareholder returns, over three years, have been disappointing. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at New Trend Lifestyle Group.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity 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.

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https://finance.yahoo.com/news/trend-lifestyle-group-plcs-lon-134345707.html

2019-05-01 13:43:00Z
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