How Much Is Pak Tak International's (HKG:2668) CEO Getting Paid?

This article will reflect on the compensation paid to Jian Wang who has served as CEO of Pak Tak International Limited (HKG:2668) since 2016. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Pak Tak International.

See our latest analysis for Pak Tak International

Comparing Pak Tak International Limited's CEO Compensation With the industry

According to our data, Pak Tak International Limited has a market capitalization of HK$682m, and paid its CEO total annual compensation worth HK$681k over the year to December 2019. That's a notable decrease of 22% on last year. We note that the salary portion, which stands at HK$663.0k constitutes the majority of total compensation received by the CEO.

For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of HK$2.4m. This suggests that Jian Wang is paid below the industry median. What's more, Jian Wang holds HK$129m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

On an industry level, around 93% of total compensation represents salary and 7.4% is other remuneration. Investors will find it interesting that Pak Tak International pays the bulk of its rewards through a traditional salary, instead of 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.

A Look at Pak Tak International Limited's Growth Numbers

Over the last three years, Pak Tak International Limited has shrunk its earnings per share by 20% per year. In the last year, its revenue is up 92%.

The reduction in EPS, over three years, is arguably concerning. 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. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Pak Tak International Limited Been A Good Investment?

Given the total shareholder loss of 40% over three years, many shareholders in Pak Tak International Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Jian receives almost all of their compensation through a salary. As we touched on above, Pak Tak International Limited is currently paying its CEO below the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. But Pak Tak International has recorded negative shareholder returns and EPS growth over the last three years. Conversely, revenues are increasing at a healthy pace, recently. Though we believe Jian is modestly compensated, shareholders might want to see positive shareholder returns before agreeing compensation should be raised.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 4 warning signs for Pak Tak International you should be aware of, and 1 of them is potentially serious.

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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