How Much is PPS International (Holdings)'s (HKG:8201) CEO Getting Paid?

Shaoheng Yu has been the CEO of PPS International (Holdings) Limited (HKG:8201) since 2017, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for PPS International (Holdings)

How Does Total Compensation For Shaoheng Yu Compare With Other Companies In The Industry?

Our data indicates that PPS International (Holdings) Limited has a market capitalization of HK$49m, and total annual CEO compensation was reported as HK$2.3m for the year to June 2020. That's a notable increase of 84% on last year. We think total compensation is more important but our data shows that the CEO salary is lower, at HK$612k.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$1.5m. This suggests that Shaoheng Yu is paid more than the median for the industry. Moreover, Shaoheng Yu also holds HK$37m worth of PPS International (Holdings) stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. PPS International (Holdings) pays a modest slice of remuneration through salary, as compared to the broader industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

A Look at PPS International (Holdings) Limited's Growth Numbers

PPS International (Holdings) Limited has seen its earnings per share (EPS) increase by 7.9% a year over the past three years. The trailing twelve months of revenue was pretty much the same as the prior period.

We'd prefer higher revenue growth, but the modest improvement in EPS is good. Considering these factors we'd say performance has been pretty decent, though not amazing. 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 PPS International (Holdings) Limited Been A Good Investment?

Since shareholders would have lost about 73% over three years, some PPS International (Holdings) Limited investors would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we noted earlier, PPS International (Holdings) pays its CEO higher than the norm for similar-sized companies belonging to the same industry. While we have not been overly impressed by the business performance, the shareholder returns have been utterly depressing, over the last three years. This doesn't look great when you consider Shaoheng is taking home compensation north of the industry average. With such poor returns, we would understand if shareholders had concerns related to the CEO's pay.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. We identified 2 warning signs for PPS International (Holdings) (1 is concerning!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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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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