Patty Tsai became the CEO of Yue Yuen Industrial (Holdings) Limited (HKG:551) in 2013. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Patty Tsai’s Compensation Compare With Similar Sized Companies?
Our data indicates that Yue Yuen Industrial (Holdings) Limited is worth HK$34.0b, and total annual CEO compensation is US$349k. That’s a fairly small increase of 0.3% on year before. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO compensation of that group was US$531k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Yue Yuen Industrial (Holdings) has changed over time.
Is Yue Yuen Industrial (Holdings) Limited Growing?
Yue Yuen Industrial (Holdings) Limited has increased its earnings per share (EPS) by an average of 4.4% a year, over the last three years It achieved revenue growth of 9.2% over the last year.
I’d prefer higher revenue growth, but it is good to see modest EPS growth. So there are some positives here, but not enough to earn high praise.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Yue Yuen Industrial (Holdings) Limited Been A Good Investment?
With a three year total loss of 5.0%, Yue Yuen Industrial (Holdings) Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
Yue Yuen Industrial (Holdings) Limited is currently paying its CEO below what is normal for companies of its size.
Patty Tsai receives relatively low remuneration compared to similar sized companies. But the company isn’t exactly firing on all cylinders, and returns over three years are not good. I am not concerned by the CEO compensation, but it would be good to see improved performance before pay increases. So you may want to check if insiders are buying Yue Yuen Industrial (Holdings) Limited shares with their own money (free access).
Or you might prefer examine intently this intuitive graph showing past earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.