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Ching Kui Lam became the CEO of Wai Chun Mining Industry Group Company Limited (HKG:660) in 2013. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
How Does Ching Kui Lam’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Wai Chun Mining Industry Group Company Limited has a market cap of HK$730m, and is paying total annual CEO compensation of HK$1.4m. (This figure is for the year to 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$1.4m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO compensation in that group is HK$1.7m.
So Ching Kui Lam receives a similar amount to the median CEO pay, amongst the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at Wai Chun Mining Industry Group has changed from year to year.
Is Wai Chun Mining Industry Group Company Limited Growing?
Over the last three years Wai Chun Mining Industry Group Company Limited has grown its earnings per share (EPS) by an average of 13% per year (using a line of best fit). In the last year, its revenue is up 5.7%.
This demonstrates that the company has been improving recently. A good result. It’s also good to see modest revenue growth, suggesting the underlying business is healthy. We don’t have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Wai Chun Mining Industry Group Company Limited Been A Good Investment?
Since shareholders would have lost about 59% over three years, some Wai Chun Mining Industry Group Company Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
Ching Kui Lam is paid around the same as most CEOs of similar size companies.
We’d say the company can boast of its EPS growth, but it’s disappointing to see negative shareholder returns over three years. Considering the the positives we don’t think the CEO pays is too high, but it’s certainly hard to argue it is too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Wai Chun Mining Industry Group.
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
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 firstname.lastname@example.org.