How Is Paladin's (HKG:495) CEO Paid Relative To Peers?

James Oung is the CEO of Paladin Limited (HKG:495), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Paladin.

Check out our latest analysis for Paladin

Comparing Paladin Limited's CEO Compensation With the industry

Our data indicates that Paladin Limited has a market capitalization of HK$175m, and total annual CEO compensation was reported as HK$3.3m for the year to June 2020. Notably, that's a decrease of 28% over the year before. Notably, the salary which is HK$1.87m, 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$1.8m. Accordingly, our analysis reveals that Paladin Limited pays James Oung north of the industry median. Furthermore, James Oung directly owns HK$66m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Paladin pays a modest slice of remuneration through salary, as compared to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Paladin Limited's Growth

Paladin Limited has reduced its earnings per share by 94% a year over the last three years. Its revenue is up 239% over the last year.

The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Paladin Limited Been A Good Investment?

Given the total shareholder loss of 48% over three years, many shareholders in Paladin Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

As we touched on above, Paladin Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. At the same time, looking at EPS and total shareholder returns, it's tough to say Paladin is in a sound position, considering both metrics are down. On the bright side, at lease revenue growth seems to be marching northward. Suffice it to say, we don't think the CEO is underpaid!

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. In our study, we found 3 warning signs for Paladin you should be aware of, and 1 of them is concerning.

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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