The CEO of Tai Cheung Holdings Limited (HKG:88) is David Chan. 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 - 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 David Chan's Compensation Compare With Similar Sized Companies?
According to our data, Tai Cheung Holdings Limited has a market capitalization of HK$4.3b, and pays its CEO total annual compensation worth HK$5.1m. (This figure is for the year to March 2019). We note that's an increase of 24% above last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$3.3m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.5m.
It would therefore appear that Tai Cheung Holdings Limited pays David Chan more than the median CEO remuneration at companies of a similar size, 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 Tai Cheung Holdings has changed from year to year.
Is Tai Cheung Holdings Limited Growing?
Tai Cheung Holdings Limited has increased its earnings per share (EPS) by an average of 23% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -67%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. While it would be good to see revenue growth, profits matter more in the end. You might want to check this free visual report on analyst forecasts for future earnings.
Has Tai Cheung Holdings Limited Been A Good Investment?
With a total shareholder return of 21% over three years, Tai Cheung 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 compared total CEO remuneration at Tai Cheung Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, 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 Tai Cheung Holdings (free visualization of insider trades).
If you want to buy a stock that is better than Tai Cheung Holdings, this free list of high return, low debt companies is a great place to look.
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If you spot an error that warrants correction, please contact the editor at email@example.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. Thank you for reading.