A Quick Analysis On Chinney Kin Wing Holdings' (HKG:1556) CEO Salary

The CEO of Chinney Kin Wing Holdings Limited (HKG:1556) is Johnny Yu, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Chinney Kin Wing Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Chinney Kin Wing Holdings

Comparing Chinney Kin Wing Holdings Limited's CEO Compensation With the industry

At the time of writing, our data shows that Chinney Kin Wing Holdings Limited has a market capitalization of HK$293m, and reported total annual CEO compensation of HK$9.5m for the year to December 2019. That's a notable increase of 12% on last year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$3.9m.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.9m. Hence, we can conclude that Johnny Yu is remunerated higher than the industry median.

On an industry level, roughly 91% of total compensation represents salary and 8.7% is other remuneration. It's interesting to note that Chinney Kin Wing Holdings allocates a smaller portion of compensation to salary in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

A Look at Chinney Kin Wing Holdings Limited's Growth Numbers

Chinney Kin Wing Holdings Limited has reduced its earnings per share by 11% a year over the last three years. In the last year, its revenue is up 19%.

Investors would be a bit wary of companies that have lower EPS But in contrast the revenue growth is strong, suggesting future potential for EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Chinney Kin Wing Holdings Limited Been A Good Investment?

Given the total shareholder loss of 19% over three years, many shareholders in Chinney Kin Wing Holdings Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As we noted earlier, Chinney Kin Wing Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. In contrast, revenue growth for the company has been showing a positive trend. Most would consider it prudent for the company to hold off any CEO pay rise until performance improves.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We did our research and identified 3 warning signs (and 1 which is significant) in Chinney Kin Wing Holdings we think you should know about.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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