Guy Martin Bradley has been the CEO of Swire Properties Limited (HKG:1972) since 2015. First, this article will compare CEO compensation with compensation at other large companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
How Does Guy Martin Bradley’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Swire Properties Limited has a market cap of HK$163.2b, and is paying total annual CEO compensation of HK$13m. That’s actually a decrease on the year before. When we examined a group of companies with market caps over HK$62.6b, we found that their median CEO compensation was HK$5m.
It would therefore appear that Swire Properties Limited pays Guy Martin Bradley more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn’t mean the remuneration 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.
The graphic below shows how CEO compensation at Swire Properties has changed from year to year.
Is Swire Properties Limited Growing?
Over the last three years Swire Properties Limited has grown its earnings per share (EPS) by an average of 48% per year. Its revenue is down -28% over last year.
This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Swire Properties Limited Been A Good Investment?
With a total shareholder return of 33% over three years, Swire Properties 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 compared total CEO remuneration at Swire Properties Limited with the amount paid at other large 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. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Swire Properties Limited (free visualization of insider trades).
Or you could feast your eyes on this interactive graph depicting past earnings, cash flow and revenue.
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.