Yuen Cheong Lo is the CEO of Man King Holdings Limited (HKG:2193), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Man King Holdings.
See our latest analysis for Man King Holdings
Comparing Man King Holdings Limited's CEO Compensation With the industry
At the time of writing, our data shows that Man King Holdings Limited has a market capitalization of HK$143m, and reported total annual CEO compensation of HK$4.2m for the year to March 2020. That's mostly flat as compared to the prior year's compensation. In particular, the salary of HK$4.05m, makes up a huge portion of the total compensation being paid to the CEO.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.0m. Hence, we can conclude that Yuen Cheong Lo is remunerated higher than the industry median. Moreover, Yuen Cheong Lo also holds HK$1.4m worth of Man King Holdings stock directly under their own name.
| Component | 2020 | 2019 | Proportion (2020) |
| Salary | HK$4.1m | HK$4.1m | 98% |
| Other | HK$100k | HK$76k | 2% |
| Total Compensation | HK$4.2m | HK$4.1m | 100% |
Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 8.7% of the pie. Man King Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
Man King Holdings Limited's Growth
Man King Holdings Limited has reduced its earnings per share by 8.0% a year over the last three years. Its revenue is up 22% over the last year.
The decrease in EPS could be a concern for some investors. But in contrast the revenue growth is strong, suggesting future potential for EPS growth. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Man King Holdings Limited Been A Good Investment?
Since shareholders would have lost about 60% over three years, some Man King Holdings Limited investors would surely be feeling negative emotions. Therefore, it might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Man King Holdings pays its CEO a majority of compensation through a salary. As we noted earlier, Man King Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. Meanwhile, the company has been unable to show any EPS growth, and shareholder returns are also in the red. 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.
We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Man King Holdings you should be aware of, and 1 of them is significant.
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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About SEHK:2193
Man King Holdings
An investment holding company, engages in the provision of construction and civil engineering, and corporate management services to the public and private sectors in Hong Kong.
Adequate balance sheet and overvalued.
