Is Kingboard Holdings Limited’s (HKG:148) CEO Pay Justified?
The CEO of Kingboard Holdings Limited (HKG:148) is Wing Chang. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Kingboard Holdings
How Does Wing Chang’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Kingboard Holdings Limited has a market cap of HK$30b, and is paying total annual CEO compensation of HK$22m. (This is based on the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$3.0m. When we examined a selection of companies with market caps ranging from HK$16b to HK$50b, we found the median CEO total compensation was HK$3.6m.
It would therefore appear that Kingboard Holdings Limited pays Wing Chang more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Kingboard Holdings has changed over time.
Is Kingboard Holdings Limited Growing?
On average over the last three years, Kingboard Holdings Limited has grown earnings per share (EPS) by 47% each year (using a line of best fit). Its revenue is up 29% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. You might want to check this free visual report on analyst forecasts for future earnings.
Has Kingboard Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 175% over three years, Kingboard Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We compared the total CEO remuneration paid by Kingboard Holdings Limited, and compared it to remuneration at a group of 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. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kingboard Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
