Victor Li became the CEO of CK Asset Holdings Limited (HKG:1113) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Then we'll look at a snap shot of the business growth. 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.
How Does Victor Li's Compensation Compare With Similar Sized Companies?
According to our data, CK Asset Holdings Limited has a market capitalization of HK$192b, and paid its CEO total annual compensation worth HK$94m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$56m. We looked at a group of companies with market capitalizations over HK$63b and the median CEO total compensation was HK$6.2m. There aren't very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Victor Li receives more in total compensation than the median of a group of large companies in the same market as CK Asset Holdings 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, below, how CEO compensation at CK Asset Holdings has changed over time.
Is CK Asset Holdings Limited Growing?
CK Asset Holdings Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). It achieved revenue growth of 33% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. You might want to check this free visual report on analyst forecasts for future earnings.
Has CK Asset Holdings Limited Been A Good Investment?
CK Asset Holdings Limited has served shareholders reasonably well, with a total return of 11% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
We examined the amount CK Asset Holdings Limited pays its CEO, and compared it to the amount paid by other large companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. So you may want to check if insiders are buying CK Asset Holdings shares with their own money (free access).
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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