Should You Worry About Wong’s Kong King International (Holdings) Limited’s (HKG:532) CEO Pay?

Edward Tsui became the CEO of Wong’s Kong King International (Holdings) Limited (HKG:532) in 2015. First, this article will compare CEO compensation with compensation at similar sized 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. The aim of all this is to consider the appropriateness of CEO pay levels.

Check out our latest analysis for Wong’s Kong King International (Holdings)

How Does Edward Tsui’s Compensation Compare With Similar Sized Companies?

According to our data, Wong’s Kong King International (Holdings) Limited has a market capitalization of HK$627m, and pays its CEO total annual compensation worth HK$7.5m. (This figure is for the year to December 2018). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$5.3m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

It would therefore appear that Wong’s Kong King International (Holdings) Limited pays Edward Tsui 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Wong’s Kong King International (Holdings) has changed over time.

SEHK:532 CEO Compensation, August 13th 2019
SEHK:532 CEO Compensation, August 13th 2019

Is Wong’s Kong King International (Holdings) Limited Growing?

On average over the last three years, Wong’s Kong King International (Holdings) Limited has grown earnings per share (EPS) by 36% each year (using a line of best fit). It achieved revenue growth of 7.5% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s nice to see a little revenue growth, as this is consistent with healthy business conditions.

Has Wong’s Kong King International (Holdings) Limited Been A Good Investment?

Boasting a total shareholder return of 33% over three years, Wong’s Kong King International (Holdings) 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.

In Summary…

We compared total CEO remuneration at Wong’s Kong King International (Holdings) Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.

However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wong’s Kong King International (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.