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Yiu Leung is the CEO of Tao Heung Holdings Limited (HKG:573). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. 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 Yiu Leung's Compensation Compare With Similar Sized Companies?
According to our data, Tao Heung Holdings Limited has a market capitalization of HK$1.5b, and pays its CEO total annual compensation worth HK$2.3m. (This is based on the year to December 2018). Notably, that's an increase of 12% over the year before. We think total compensation is more important but we note that the CEO salary is lower, at HK$2.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$784m to HK$3.1b. The median total CEO compensation was HK$2.0m.
So Yiu Leung receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see a visual representation of the CEO compensation at Tao Heung Holdings, below.
Is Tao Heung Holdings Limited Growing?
On average over the last three years, Tao Heung Holdings Limited has shrunk earnings per share by 22% each year (measured with a line of best fit). In the last year, its revenue is up 2.8%.
Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. 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 could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Tao Heung Holdings Limited Been A Good Investment?
Given the total loss of 4.0% over three years, many shareholders in Tao Heung 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.
Yiu Leung is paid around what is normal the leaders of comparable 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. This contrasts with the growth in CEO remuneration, in the last year. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Tao Heung Holdings (free visualization of insider trades).
If you want to buy a stock that is better than Tao Heung Holdings, this free list of high return, low debt companies is a great place to look.
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.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Thank you for reading.