Is Texwinca Holdings Limited (HKG:321) Excessively Paying Its CEO?
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Kit Chung Ting has been the CEO of Texwinca Holdings Limited (HKG:321) since 2013. First, this article will compare CEO compensation with compensation at similar sized 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Texwinca Holdings
How Does Kit Chung Ting’s Compensation Compare With Similar Sized Companies?
Our data indicates that Texwinca Holdings Limited is worth HK$4.2b, and total annual CEO compensation is HK$18m. (This number is for the twelve months until 2018). While we always look at total compensation first, we note that the salary component is less, at HK$8.1m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO compensation of that group was HK$2.3m.
Thus we can conclude that Kit Chung Ting receives more in total compensation than the median of a group of companies in the same market, and of similar size to Texwinca Holdings Limited. However, this doesn’t necessarily mean the pay 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.
You can see, below, how CEO compensation at Texwinca Holdings has changed over time.
Is Texwinca Holdings Limited Growing?
Texwinca Holdings Limited has reduced its earnings per share by an average of 46% a year, over the last three years. Its revenue is up 9.3% over last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn’t much comfort against the reduced earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
It could be important to check this free visual depiction of what analysts expect for the future.
Has Texwinca Holdings Limited Been A Good Investment?
Since shareholders would have lost about 43% over three years, some Texwinca Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared the total CEO remuneration paid by Texwinca Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years.
Just as bad, share price gains for investors have failed to materialize, over the same period. Some might well form the view that the CEO is paid too generously! Shareholders may want to check for free if Texwinca Holdings insiders are buying or selling shares.
Of course, the past can be informative so you might be interested in considering this analytical visualization showing the company history of earnings 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 editorial-team@simplywallst.com.
