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Is Karrie International Holdings Limited's (HKG:1050) CEO Salary Justified?

Simply Wall St

The CEO of Karrie International Holdings Limited (HKG:1050) is Cheuk Ho. 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.

View our latest analysis for Karrie International Holdings

How Does Cheuk Ho's Compensation Compare With Similar Sized Companies?

According to our data, Karrie International Holdings Limited has a market capitalization of HK$2.0b, and pays its CEO total annual compensation worth HK$7.2m. (This is based on the year to March 2019). That's just a smallish increase of 1.6% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.7m. 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$2.4m.

Thus we can conclude that Cheuk Ho receives more in total compensation than the median of a group of companies in the same market, and of similar size to Karrie International Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

You can see a visual representation of the CEO compensation at Karrie International Holdings, below.

SEHK:1050 CEO Compensation, September 3rd 2019

Is Karrie International Holdings Limited Growing?

Karrie International Holdings Limited has increased its earnings per share (EPS) by an average of 21% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -9.2%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. 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 Karrie International Holdings Limited Been A Good Investment?

I think that the total shareholder return of 107%, over three years, would leave most Karrie International Holdings Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We examined the amount Karrie International Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

However we must not forget that the EPS growth has been very strong over three years. In addition, shareholders have done well over the same time period. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Karrie International Holdings.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.

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.