Jian Tao Kong is the CEO of KWG Group Holdings Limited (HKG:1813). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This process should give us an idea about how appropriately the CEO is paid.
How Does Jian Tao Kong's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that KWG Group Holdings Limited has a market cap of HK$30b, and reported total annual CEO compensation of CN¥4.9m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at CN¥3.5m. When we examined a selection of companies with market caps ranging from CN¥14b to CN¥46b, we found the median CEO total compensation was CN¥3.8m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. On a sector level, around 72% of total compensation represents salary and 28% is other remuneration. KWG Group Holdings does not set aside a larger portion of remuneration in the form of salary, maintaining the same rate as the wider market.
As you can see, Jian Tao Kong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean KWG Group Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. You can see, below, how CEO compensation at KWG Group Holdings has changed over time.
Is KWG Group Holdings Limited Growing?
KWG Group Holdings Limited has seen earnings per share (EPS) move positively by an average of 37% a year, over the last three years (using a line of best fit). It achieved revenue growth of 234% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. It could be important to check this free visual depiction of what analysts expect for the future.
Has KWG Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 152% over three years, KWG Group Holdings Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
We examined the amount KWG Group Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within 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. As a result of this good performance, the CEO remuneration may well be quite reasonable. On another note, KWG Group Holdings has 4 warning signs (and 2 which are concerning) we think you should know about.
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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