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Should You Be Pleased About The CEO Pay At Ban Loong Holdings Limited's (HKG:30)

Simply Wall St

In 2017 Wang Chow was appointed CEO of Ban Loong Holdings Limited (HKG:30). First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Ban Loong Holdings

How Does Wang Chow's Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Ban Loong Holdings Limited has a market cap of HK$2.3b, and reported total annual CEO compensation of HK$1.6m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$1.5m. 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.

So Wang Chow 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 a visual representation of the CEO compensation at Ban Loong Holdings, below.

SEHK:30 CEO Compensation, January 15th 2020

Is Ban Loong Holdings Limited Growing?

Over the last three years Ban Loong Holdings Limited has grown its earnings per share (EPS) by an average of 108% per year (using a line of best fit). In the last year, its revenue is up 73%.

This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ban Loong Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 169% over three years, Ban Loong Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

Wang Chow is paid around what is normal the leaders of comparable size companies.

Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! So you may want to check if insiders are buying Ban Loong Holdings shares with their own money (free access).

Important note: Ban Loong 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 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.