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Is Miko International Holdings Limited's (HKG:1247) CEO Paid At A Competitive Rate?

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. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.

See 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$39m, and total annual CEO compensation was reported as CN¥729k for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥699k. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.

This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Miko International Holdings has changed over time.

SEHK:1247 CEO Compensation, March 10th 2020

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). It saw its revenue drop 48% over the last year.

Few shareholders would be pleased to read that earnings per share are lower over three years. This is compounded by the fact revenue is actually down on last year. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. 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 Miko International Holdings Limited Been A Good Investment?

Since shareholders would have lost about 87% over three years, some Miko International Holdings Limited shareholders would surely be feeling negative emotions. 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). While one could argue it is appropriate for the CEO to be paid less than other CEOs of similar sized companies, given company performance, we would not call the pay overly generous. CEO compensation is an important area to keep your eyes on, but we've also identified 5 warning signs for Miko International Holdings (2 are a bit unpleasant!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.