How Much Is The Cross-Harbour (Holdings) Limited (HKG:32) CEO Getting Paid?

John Yeung became the CEO of The Cross-Harbour (Holdings) Limited (HKG:32) in 2001, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Cross-Harbour (Holdings) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Cross-Harbour (Holdings)

How Does Total Compensation For John Yeung Compare With Other Companies In The Industry?

At the time of writing, our data shows that The Cross-Harbour (Holdings) Limited has a market capitalization of HK$5.1b, and reported total annual CEO compensation of HK$14m for the year to December 2019. That's a fairly small increase of 3.5% over the previous year. While we always look at total compensation first, our analysis shows that the salary component is less, at HK$5.8m.

On examining similar-sized companies in the industry with market capitalizations between HK$3.1b and HK$12b, we discovered that the median CEO total compensation of that group was HK$1.8m. Accordingly, our analysis reveals that The Cross-Harbour (Holdings) Limited pays John Yeung north of the industry median.

On an industry level, around 91% of total compensation represents salary and 9.2% is other remuneration. Cross-Harbour (Holdings) sets aside a smaller share of compensation for salary, in comparison to the overall industry. If total compensation is slanted towards non-salary benefits, it indicates that CEO pay is linked to company performance.

The Cross-Harbour (Holdings) Limited's Growth

Over the last three years, The Cross-Harbour (Holdings) Limited has shrunk its earnings per share by 19% per year. In the last year, its revenue is down 47%.

Overall this is not a very positive result for shareholders. And the impression is worse when you consider revenue is down year-on-year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has The Cross-Harbour (Holdings) Limited Been A Good Investment?

The Cross-Harbour (Holdings) Limited has served shareholders reasonably well, with a total return of 23% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, John is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. This doesn't look great when you realize that the company has been suffering from negative EPS growth for the last three years. And while shareholder returns have been respectable, they have hardly been superb. So we think more research is needed, but we don't think the CEO is underpaid.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. We've identified 1 warning sign for Cross-Harbour (Holdings) that investors should be aware of in a dynamic business environment.

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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