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Does Yan Tat Group Holdings Limited's (HKG:1480) CEO Salary Reflect Performance?

Simply Wall St

The CEO of Yan Tat Group Holdings Limited (HKG:1480) is Wing Yin Chan. 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. 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.

Check out our latest analysis for Yan Tat Group Holdings

How Does Wing Yin Chan's Compensation Compare With Similar Sized Companies?

Our data indicates that Yan Tat Group Holdings Limited is worth HK$286m, and total annual CEO compensation was reported as HK$2.1m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.9m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.

So Wing Yin Chan receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Yan Tat Group Holdings has changed from year to year.

SEHK:1480 CEO Compensation, October 22nd 2019

Is Yan Tat Group Holdings Limited Growing?

Over the last three years Yan Tat Group Holdings Limited has grown its earnings per share (EPS) by an average of 32% per year (using a line of best fit). The trailing twelve months of revenue was pretty much the same as the prior period.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Yan Tat Group Holdings Limited Been A Good Investment?

Given the total loss of 41% over three years, many shareholders in Yan Tat Group 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.

In Summary...

Wing Yin Chan is paid around what is normal the leaders of comparable size companies.

We think that the EPS growth is very pleasing, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Yan Tat Group Holdings.

If you want to buy a stock that is better than Yan Tat Group 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 editorial-team@simplywallst.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.