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Is Cathay International Holdings Limited’s (LON:CTI) CEO Being Overpaid?

In 2010 Jin-Yi Lee was appointed CEO of Cathay International Holdings Limited (LON:CTI). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Cathay International Holdings

How Does Jin-Yi Lee’s Compensation Compare With Similar Sized Companies?

According to our data, Cathay International Holdings Limited has a market capitalization of UK£30m, and pays its CEO total annual compensation worth US$130k. (This figure is for the year to 2017). Notably, the salary of US$551k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$313k.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you’ll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Cathay International Holdings has changed over time.

LSE:CTI CEO Compensation November 30th 18

Is Cathay International Holdings Limited Growing?

Cathay International Holdings Limited has increased its earnings per share (EPS) by an average of 1.6% a year, over the last three years Its revenue is down -14% over last year.

I generally like to see a little revenue growth, but it is good to see EPS growth. It’s hard to reach a conclusion about business performance right now. This may be one to watch.

Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Cathay International Holdings Limited Been A Good Investment?

With a three year total loss of 59%, Cathay International Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.

In Summary…

Cathay International Holdings Limited is currently paying its CEO below what is normal for companies of its size.

Jin-Yi Lee receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. Shareholders may want to check for free if Cathay International Holdings insiders are buying or selling shares.

Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.