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Mei Po Fung is the CEO of World Houseware (Holdings) Limited (HKG:713). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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 Mei Po Fung’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that World Houseware (Holdings) Limited has a market cap of HK$367m, and is paying total annual CEO compensation of HK$3.4m. (This figure is for the year to December 2018). That’s a modest increase of 4.1% on the prior year year. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$3.4m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
It would therefore appear that World Houseware (Holdings) Limited pays Mei Po Fung 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at World Houseware (Holdings) has changed over time.
Is World Houseware (Holdings) Limited Growing?
Over the last three years World Houseware (Holdings) Limited has grown its earnings per share (EPS) by an average of 111% per year (using a line of best fit). It achieved revenue growth of 1.3% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has World Houseware (Holdings) Limited Been A Good Investment?
Given the total loss of 9.4% over three years, many shareholders in World Houseware (Holdings) Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
We compared the total CEO remuneration paid by World Houseware (Holdings) Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. So you may want to check if insiders are buying World Houseware (Holdings) shares with their own money (free access).
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.
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 firstname.lastname@example.org. 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.