A Look At Integrated Waste Solutions Group Holdings' (HKG:923) CEO Remuneration

This article will reflect on the compensation paid to King Sang Lam who has served as CEO of Integrated Waste Solutions Group Holdings Limited (HKG:923) since 2016. This analysis will also assess whether Integrated Waste Solutions Group Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Integrated Waste Solutions Group Holdings

How Does Total Compensation For King Sang Lam Compare With Other Companies In The Industry?

Our data indicates that Integrated Waste Solutions Group Holdings Limited has a market capitalization of HK$212m, and total annual CEO compensation was reported as HK$3.3m for the year to March 2020. We note that's a decrease of 8.3% compared to last year. Notably, the salary which is HK$2.44m, represents most of the total compensation being paid.

On comparing similar-sized companies in the industry with market capitalizations below HK$1.6b, we found that the median total CEO compensation was HK$682k. Hence, we can conclude that King Sang Lam is remunerated higher than the industry median.

On an industry level, around 73% of total compensation represents salary and 27% is other remuneration. Although there is a difference in how total compensation is set, Integrated Waste Solutions Group Holdings more or less reflects the market in terms of setting the salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Integrated Waste Solutions Group Holdings Limited's Growth

Over the past three years, Integrated Waste Solutions Group Holdings Limited has seen its earnings per share (EPS) grow by 10% per year. In the last year, its revenue is down 47%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Integrated Waste Solutions Group Holdings Limited Been A Good Investment?

With a three year total loss of 68% for the shareholders, Integrated Waste Solutions Group Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

In Summary...

As previously discussed, King Sang is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, we must not forget that the EPS growth has been very strong, but shareholder returns — over the same period — have been disappointing. Considering overall performance, we can't say King Sang is underpaid, in fact compensation is definitely on the higher side.

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 Integrated Waste Solutions Group Holdings that investors should be aware of in a dynamic business environment.

Important note: Integrated Waste Solutions Group Holdings is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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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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