In 2013 Patty Tsai was appointed CEO of Yue Yuen Industrial (Holdings) Limited (HKG:551). 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 process should give us an idea about how appropriately the CEO is paid.
How Does Patty Tsai’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Yue Yuen Industrial (Holdings) Limited has a market cap of HK$32.7b, and is paying total annual CEO compensation of US$349k. That’s a fairly small increase of 0.3% on year before. When we examined a selection of companies with market caps ranging from US$2.0b to US$6.4b, we found the median CEO compensation was US$444k.
So Patty Tsai is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see a visual representation of the CEO compensation at Yue Yuen Industrial (Holdings), below.
Is Yue Yuen Industrial (Holdings) Limited Growing?
On average over the last three years, Yue Yuen Industrial (Holdings) Limited has grown earnings per share (EPS) by 4.4% each year. Its revenue is up 9.2% over last year.
I’d prefer higher revenue growth, but I’m happy with the modest EPS growth. It’s clear the performance has been quite decent, but it it falls short of outstanding,based on this information.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Yue Yuen Industrial (Holdings) Limited Been A Good Investment?
Given the total loss of 6.5% over three years, many shareholders in Yue Yuen Industrial (Holdings) Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
Remuneration for Patty Tsai is close enough to the median pay for a CEO of a similar sized company .
The company cannot boast particularly strong per share growth. And it’s hard to argue that the returns over the last three years have delighted. So many would argue that the CEO is certainly not underpaid. Whatever your view on compensation, you might want to check if insiders are buying or selling Yue Yuen Industrial (Holdings) Limited shares (free trial).
Or you might rather take a peek at this analytical visualization of historic cash flow, 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 email@example.com.