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In 2007 Patrick Lee was appointed CEO of Tian An China Investments Company Limited (HKG:28). First, this article will compare CEO compensation with compensation at similar sized companies. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Patrick Lee’s Compensation Compare With Similar Sized Companies?
According to our data, Tian An China Investments Company Limited has a market capitalization of HK$6.6b, and pays its CEO total annual compensation worth HK$7.0m. (This is based on the year to 2017). While we always look at total compensation first, we note that the salary component is less, at HK$21k. We examined companies with market caps from HK$3.1b to HK$13b, and discovered that the median CEO compensation of that group was HK$3.5m.
It would therefore appear that Tian An China Investments Company Limited pays Patrick Lee 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. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Tian An China Investments has changed over time.
Is Tian An China Investments Company Limited Growing?
On average over the last three years, Tian An China Investments Company Limited has grown earnings per share (EPS) by 7.0% each year (using a line of best fit). In the last year, its revenue is up 49%.
It’s hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I’d stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Tian An China Investments Company Limited Been A Good Investment?
With a total shareholder return of 28% over three years, Tian An China Investments Company Limited shareholders would, in general, be reasonably content. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
We examined the amount Tian An China Investments Company Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We generally prefer to see stronger EPS growth, and we’re not particularly impressed with the total shareholder return, over the last three years. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Shareholders may want to check for free if Tian An China Investments 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.