Victor Li became the CEO of CK Asset Holdings Limited (HKG:1113) in 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. Next, we’ll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Victor Li’s Compensation Compare With Similar Sized Companies?
According to our data, CK Asset Holdings Limited has a market capitalization of HK$195b, and paid its CEO total annual compensation worth HK$94m over the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$56m. When we examined a group of companies with market caps over HK$63b, we found that their median CEO total compensation was HK$6.4m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
Thus we can conclude that Victor Li receives more in total compensation than the median of a group of large companies in the same market as CK Asset Holdings Limited. However, this doesn’t necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance. It could be important to check this free visual depiction of what analysts expect for the future.
The graphic below shows how CEO compensation at CK Asset Holdings has changed from year to year.
Is CK Asset Holdings Limited Growing?
CK Asset Holdings Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 33%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Has CK Asset Holdings Limited Been A Good Investment?
CK Asset Holdings Limited has generated a total shareholder return of 12% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
We compared total CEO remuneration at CK Asset Holdings Limited with the amount paid at other large companies. Our data suggests that it pays above the median CEO pay within that group.
However we must not forget that the EPS growth has been very strong over three years. We also note that, over the same time frame, shareholder returns haven’t been bad. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we’d recommend further research on management. Shareholders may want to check for free if CK Asset Holdings insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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