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Is Miko International Holdings Limited (HKG:1247) Overpaying Its CEO?

Simply Wall St

The CEO of Miko International Holdings Limited (HKG:1247) is Peiji Ding. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Miko International Holdings

How Does Peiji Ding's Compensation Compare With Similar Sized Companies?

Our data indicates that Miko International Holdings Limited is worth HK$71m, and total annual CEO compensation is CN¥729k. (This number is for the twelve months until December 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥699k. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.8m.

A first glance this seems like a real positive for shareholders, since Peiji Ding is paid less than the average total compensation paid by similar sized companies. However, before we heap on the praise, we should delve deeper to understand business performance.

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

SEHK:1247 CEO Compensation, September 12th 2019

Is Miko International Holdings Limited Growing?

On average over the last three years, Miko International Holdings Limited has shrunk earnings per share by 20% each year (measured with a line of best fit). In the last year, its revenue is down -48%.

Few shareholders would be pleased to read that earnings per share are lower over three years. And the impression is worse when you consider revenue is down year-on-year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Miko International Holdings Limited Been A Good Investment?

Given the total loss of 74% over three years, many shareholders in Miko International Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.

In Summary...

It appears that Miko International Holdings Limited remunerates its CEO below most similar sized companies.

The compensation paid to Peiji Ding is lower than is usual at similar sized companies, but the eps growth is lacking, just like the returns (over three years). We would not call the pay too generous, but nor would we claim the CEO is underpaid, given lacklustre business performance. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Miko International Holdings.

If you want to buy a stock that is better than Miko International 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.