Man Li Wong became the CEO of Man Wah Holdings Limited (HKG:1999) in 2004. 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Man Li Wong's Compensation Compare With Similar Sized Companies?
According to our data, Man Wah Holdings Limited has a market capitalization of HK$14b, and pays its CEO total annual compensation worth HK$5.4m. (This figure is for the year to March 2019). That's a fairly small increase of 2.0% on year before. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.4m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO total compensation was HK$4.5m.
So Man Li Wong is paid around the average of the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Man Wah Holdings, below.
Is Man Wah Holdings Limited Growing?
On average over the last three years, Man Wah Holdings Limited has shrunk earnings per share by 2.5% each year (measured with a line of best fit). Its revenue is up 12% over last year.
In the last three years the company has failed to grow earnings per share. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Man Wah Holdings Limited Been A Good Investment?
Given the total loss of 23% over three years, many shareholders in Man Wah Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
Man Li Wong is paid around the same as most CEOs of similar size companies.
After looking at EPS and total shareholder returns, it's certainly hard to argue the company has performed well, since both metrics are down. Few would argue that it's wise for the company to pay any more, before returns improve. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Man Wah Holdings (free visualization of insider trades).
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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