What Did China Tonghai International Financial Limited's (HKG:952) CEO Take Home Last Year?
In 2011 Kenneth Lam was appointed CEO of China Tonghai International Financial Limited (HKG:952). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
View our latest analysis for China Tonghai International Financial
How Does Kenneth Lam's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that China Tonghai International Financial Limited has a market cap of HK$2.9b, and reported total annual CEO compensation of HK$7.2m for the year to December 2018. Notably, the salary of HK$7.2m is the vast majority of the CEO compensation. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.3m.
It would therefore appear that China Tonghai International Financial Limited pays Kenneth Lam more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous. Although we don't have analyst forecasts you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
The graphic below shows how CEO compensation at China Tonghai International Financial has changed from year to year.
Is China Tonghai International Financial Limited Growing?
China Tonghai International Financial Limited has increased its earnings per share (EPS) by an average of 74% a year, over the last three years (using a line of best fit). Its revenue is up 21% over last year.
This demonstrates that the company has been improving recently. A good result. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing.
Has China Tonghai International Financial Limited Been A Good Investment?
With a three year total loss of 46%, China Tonghai International Financial Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount China Tonghai International Financial Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. Shareholders may want to check for free if China Tonghai International Financial insiders are buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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