In 2015 San Li was appointed CEO of Lonking Holdings Limited (HKG:3339). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
How Does San Li’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lonking Holdings Limited is worth HK$8.6b, and total annual CEO compensation is CN¥3.3m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥2.0m. When we examined a selection of companies with market caps ranging from CN¥2.7b to CN¥11b, we found the median CEO compensation was CN¥3.1m.
So San Li receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Lonking Holdings has changed over time.
Is Lonking Holdings Limited Growing?
On average over the last three years, Lonking Holdings Limited has grown earnings per share (EPS) by 72% each year. It achieved revenue growth of 57% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Lonking Holdings Limited Been A Good Investment?
I think that the total shareholder return of 75%, over three years, would leave most Lonking Holdings Limited shareholders smiling. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.
Remuneration for San Li is close enough to the median pay for a CEO of a similar sized company .
The company is growing earnings per share and total shareholder returns have been pleasing. Indeed, many might consider the pay rather modest, given the solid company performance! If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Lonking Holdings.
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.