Mark Worgan is the CEO of Tai Ping Carpets International Limited (HKG:146). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Mark Worgan's Compensation Compare With Similar Sized Companies?
According to our data, Tai Ping Carpets International Limited has a market capitalization of HK$233m, and paid its CEO total annual compensation worth HK$7.1m over the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$3.0m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
Thus we can conclude that Mark Worgan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Tai Ping Carpets International Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Tai Ping Carpets International, below.
Is Tai Ping Carpets International Limited Growing?
Over the last three years Tai Ping Carpets International Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is up 4.4% over last year.
This demonstrates that the company has been improving recently. A good result. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Tai Ping Carpets International Limited Been A Good Investment?
With a three year total loss of 10%, Tai Ping Carpets International Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at Tai Ping Carpets International Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying Tai Ping Carpets International shares with their own money (free access).
If you want to buy a stock that is better than Tai Ping Carpets International, this free list of high return, low debt companies is a great place to look.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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. Thank you for reading.