A Quick Analysis On Celestial Asia Securities Holdings' (HKG:1049) CEO Compensation

Bankee Kwan is the CEO of Celestial Asia Securities Holdings Limited (HKG:1049), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also assess whether Celestial Asia Securities Holdings pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Celestial Asia Securities Holdings

Comparing Celestial Asia Securities Holdings Limited's CEO Compensation With the industry

Our data indicates that Celestial Asia Securities Holdings Limited has a market capitalization of HK$96m, and total annual CEO compensation was reported as HK$1.2m for the year to December 2019. We note that's a decrease of 23% compared to last year. We note that the salary portion, which stands at HK$1.13m constitutes the majority of total compensation received by the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$2.1m. Accordingly, Celestial Asia Securities Holdings pays its CEO under the industry median. Furthermore, Bankee Kwan directly owns HK$14m worth of shares in the company, implying that they are deeply invested in the company's success.

Talking in terms of the industry, salary represented approximately 91% of total compensation out of all the companies we analyzed, while other remuneration made up 9.2% of the pie. Investors will find it interesting that Celestial Asia Securities Holdings pays the bulk of its rewards through a traditional salary, instead of non-salary benefits. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

Celestial Asia Securities Holdings Limited's Growth

Celestial Asia Securities Holdings Limited's earnings per share (EPS) grew 13% per year over the last three years. In the last year, its revenue is down 7.6%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Celestial Asia Securities Holdings Limited Been A Good Investment?

With a three year total loss of 81% for the shareholders, Celestial Asia Securities Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

To Conclude...

Celestial Asia Securities Holdings pays its CEO a majority of compensation through a salary. As previously discussed, Bankee is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. However, the EPS growth over three years is certainly impressive. It's tough to criticize CEO compensation when the per-share EPS movement is positive. But shareholders will likely want to hold off on any raise for Bankee until investor returns are positive.

It is always advisable to analyse CEO pay, along with performing a thorough analysis of the company's key performance areas. In our study, we found 3 warning signs for Celestial Asia Securities Holdings you should be aware of, and 2 of them are potentially serious.

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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