Chia Lee is the CEO of Tenfu (Cayman) Holdings Company Limited (HKG:6868). 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 method should give us information to assess how appropriately the company pays the CEO.
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How Does Chia Lee's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Tenfu (Cayman) Holdings Company Limited has a market cap of HK$6.1b, and is paying total annual CEO compensation of CN¥600k. (This figure is for the year to December 2017). Notably, the salary of CN¥600k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations from CN¥2.8b to CN¥11b, and the median CEO total compensation was CN¥2.8m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see, below, how CEO compensation at Tenfu (Cayman) Holdings has changed over time.
Is Tenfu (Cayman) Holdings Company Limited Growing?
Over the last three years Tenfu (Cayman) Holdings Company Limited has grown its earnings per share (EPS) by an average of 26% per year (using a line of best fit). In the last year, its revenue is up 3.7%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Tenfu (Cayman) Holdings Company Limited Been A Good Investment?
Boasting a total shareholder return of 138% over three years, Tenfu (Cayman) Holdings Company Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
It looks like Tenfu (Cayman) Holdings Company Limited pays its CEO less than similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Chia Lee deserves a raise!
Most shareholders like to see a modestly paid CEO combined with strong performance by the company. But it is even better if company insiders are also buying shares with their own money. Whatever your view on compensation, you might want to check if insiders are buying or selling Tenfu (Cayman) Holdings shares (free trial).
If you want to buy a stock that is better than Tenfu (Cayman) 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.