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Should You Worry About Kader Holdings Company Limited's (HKG:180) CEO Pay?

Simply Wall St

Kenneth Ting became the CEO of Kader Holdings Company Limited (HKG:180) in 2012. First, this article will compare CEO compensation with compensation at similar sized companies. 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.

View our latest analysis for Kader Holdings

How Does Kenneth Ting's Compensation Compare With Similar Sized Companies?

Our data indicates that Kader Holdings Company Limited is worth HK$846m, and total annual CEO compensation was reported as HK$2.3m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.0m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.

It would therefore appear that Kader Holdings Company Limited pays Kenneth Ting 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Kader Holdings has changed from year to year.

SEHK:180 CEO Compensation, October 25th 2019

Is Kader Holdings Company Limited Growing?

Over the last three years Kader Holdings Company Limited has grown its earnings per share (EPS) by an average of 15% per year (using a line of best fit). Its revenue is down 24% over last year.

This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Kader Holdings Company Limited Been A Good Investment?

With a total shareholder return of 31% over three years, Kader Holdings Company 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.

In Summary...

We compared total CEO remuneration at Kader Holdings Company Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. We also note that, over the same time frame, shareholder returns haven't been bad. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't call the CEO pay problematic. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Kader Holdings.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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. Thank you for reading.