Kwan Chan became the CEO of ELL Environmental Holdings Limited (HKG:1395) in 2014. First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kwan Chan's Compensation Compare With Similar Sized Companies?
According to our data, ELL Environmental Holdings Limited has a market capitalization of HK$155m, and paid its CEO total annual compensation worth HK$2.0m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$1.8m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
That means Kwan Chan receives fairly typical remuneration for the CEO of a company that size. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at ELL Environmental Holdings has changed over time.
Is ELL Environmental Holdings Limited Growing?
Over the last three years ELL Environmental Holdings Limited has shrunk its earnings per share by an average of 95% per year (measured with a line of best fit). In the last year, its revenue is down 27%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ELL Environmental Holdings Limited Been A Good Investment?
Given the total loss of 72% over three years, many shareholders in ELL Environmental Holdings Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
Remuneration for Kwan Chan is close enough to the median pay for a CEO of a similar sized company .
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying ELL Environmental Holdings shares with their own money (free access).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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