How Much is Kingkey Financial International (Holdings)'s (HKG:1468) CEO Getting Paid?

Yin Ning Kwok has been the CEO of Kingkey Financial International (Holdings) Limited (HKG:1468) since 2012, and this article will examine the executive's compensation with respect to the overall performance of the company. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.

View our latest analysis for Kingkey Financial International (Holdings)

How Does Total Compensation For Yin Ning Kwok Compare With Other Companies In The Industry?

Our data indicates that Kingkey Financial International (Holdings) Limited has a market capitalization of HK$1.2b, and total annual CEO compensation was reported as HK$603k for the year to March 2020. That's mostly flat as compared to the prior year's compensation. We note that the salary portion, which stands at HK$540.0k constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between HK$775m and HK$3.1b, we discovered that the median CEO total compensation of that group was HK$1.3m. Accordingly, Kingkey Financial International (Holdings) pays its CEO under the industry median. Furthermore, Yin Ning Kwok directly owns HK$4.0m worth of shares in the company, implying that they are deeply invested in the company's success.

On an industry level, roughly 95% of total compensation represents salary and 4.8% is other remuneration. There isn't a significant difference between Kingkey Financial International (Holdings) and the broader market, in terms of salary allocation in the overall compensation package. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Kingkey Financial International (Holdings) Limited's Growth

Over the last three years, Kingkey Financial International (Holdings) Limited has shrunk its earnings per share by 11% per year. Its revenue is up 17% 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. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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 Kingkey Financial International (Holdings) Limited Been A Good Investment?

Given the total shareholder loss of 2.0% over three years, many shareholders in Kingkey Financial International (Holdings) Limited are probably rather dissatisfied, to say the least. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

In Summary...

As previously discussed, Yin Ning is compensated less than what is normal for CEOs of companies of similar size, and which belong to the same industry. But Kingkey Financial International (Holdings) has recorded negative shareholder returns and EPS growth over the last three years. In contrast, revenues have increased more recently. Although it's fair to say CEO compensation is modest, shareholders might want to see healthier investor returns before thinking Yin Ning deserves a raise.

We can learn a lot about a company by studying its CEO compensation trends, along with looking at other aspects of the business. We did our research and identified 3 warning signs (and 2 which are potentially serious) in Kingkey Financial International (Holdings) we think you should know about.

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.

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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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