Wang Chow has been the CEO of Ban Loong Holdings Limited (HKG:30) since 2017. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 Wang Chow’s Compensation Compare With Similar Sized Companies?
Our data indicates that Ban Loong Holdings Limited is worth HK$1.5b, and total annual CEO compensation is HK$1.6m. (This number is for the twelve months until March 2019). We note that’s an increase of 23% above last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.5m. We examined companies with market caps from HK$784m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.2m.
So Wang Chow is paid around the average of the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
You can see, below, how CEO compensation at Ban Loong Holdings has changed over time.
Is Ban Loong Holdings Limited Growing?
Ban Loong Holdings Limited has increased its earnings per share (EPS) by an average of 54% a year, over the last three years (using a line of best fit). Its revenue is up 19% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business.
Has Ban Loong Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 97% over three years, Ban Loong Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
Wang Chow is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. Shareholders may want to check for free if Ban Loong Holdings insiders are buying or selling shares.
Important note: Ban Loong Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
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