Ki Chun Chan is the CEO of SFK Construction Holdings Limited (HKG:1447). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. 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 Ki Chun Chan's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that SFK Construction Holdings Limited has a market cap of HK$420m, and is paying total annual CEO compensation of HK$1.7m. (This figure is for the year to December 2018). Notably, the salary of HK$1.6m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.9m.
So Ki Chun Chan 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 SFK Construction Holdings has changed over time.
Is SFK Construction Holdings Limited Growing?
SFK Construction Holdings Limited has increased its earnings per share (EPS) by an average of 3.5% a year, over the last three years (using a line of best fit). It achieved revenue growth of 4.8% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but the modest improvement in EPS is good. It's clear the performance has been quite decent, but it it falls short of outstanding,based on this information. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has SFK Construction Holdings Limited Been A Good Investment?
With a three year total loss of 38%, SFK Construction Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
Ki Chun Chan is paid around the same as most CEOs of similar size companies.
We would like to see somewhat stronger per share growth. And shareholder returns have been disappointing over the last three years. So it would take a bold person to suggest the pay is too modest. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling SFK Construction Holdings (free visualization of insider trades).
Important note: SFK Construction 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.
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