Che-Woo Lui is the CEO of K. Wah International Holdings Limited (HKG:173). 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. 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.
How Does Che-Woo Lui's Compensation Compare With Similar Sized Companies?
According to our data, K. Wah International Holdings Limited has a market capitalization of HK$11b, and pays its CEO total annual compensation worth HK$22m. (This number is for the twelve months until December 2018). While we always look at total compensation first, we note that the salary component is less, at HK$13m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$7.8b to HK$25b. The median total CEO compensation was HK$3.9m.
Thus we can conclude that Che-Woo Lui receives more in total compensation than the median of a group of companies in the same market, and of similar size to K. Wah International Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at K. Wah International Holdings has changed from year to year.
Is K. Wah International Holdings Limited Growing?
K. Wah International Holdings Limited has increased its earnings per share (EPS) by an average of 13% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -4.7%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. It could be important to check this free visual depiction of what analysts expect for the future.
Has K. Wah International Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with K. Wah International Holdings Limited for providing a total return of 42% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
We examined the amount K. Wah International Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at K. Wah International Holdings.
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