Yuk Sui Lo became the CEO of Century City International Holdings Limited (HKG:355) in 2007. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
How Does Yuk Sui Lo's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Century City International Holdings Limited has a market cap of HK$1.8b, and reported total annual CEO compensation of HK$18m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$14m. When we examined a selection of companies with market caps ranging from HK$777m to HK$3.1b, we found the median CEO total compensation was HK$2.3m.
Thus we can conclude that Yuk Sui Lo receives more in total compensation than the median of a group of companies in the same market, and of similar size to Century City International Holdings Limited. However, this doesn't necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Century City International Holdings has changed over time.
Is Century City International Holdings Limited Growing?
Century City International Holdings Limited has increased its earnings per share (EPS) by an average of 15% a year, over the last three years (using a line of best fit). It saw its revenue drop 28% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Century City International Holdings Limited Been A Good Investment?
With a total shareholder return of 17% over three years, Century City International Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Century City International Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However we must not forget that the EPS growth has been very strong over three years. Looking at the same time period, we think that the shareholder returns are respectable. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. Shareholders may want to check for free if Century City International Holdings insiders are buying or selling shares.
Important note: Century City International Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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