Performance at King Fook Holdings Limited (HKG:280) has been reasonably good and CEO Mei Lin Sum has done a decent job of steering the company in the right direction. As shareholders go into the upcoming AGM on 09 September 2021, CEO compensation will probably not be their focus, but rather the steps management will take to continue the growth momentum. However, some shareholders may still be hesitant of being overly generous with CEO compensation.
How Does Total Compensation For Mei Lin Sum Compare With Other Companies In The Industry?
Our data indicates that King Fook Holdings Limited has a market capitalization of HK$401m, and total annual CEO compensation was reported as HK$2.9m for the year to March 2021. We note that's an increase of 23% above last year. Notably, the salary which is HK$2.93m, represents most of the total compensation being paid.
In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.7m. This suggests that Mei Lin Sum is paid more than the median for the industry.
On an industry level, roughly 88% of total compensation represents salary and 12% is other remuneration. King Fook Holdings has gone down a largely traditional route, paying Mei Lin Sum a high salary, giving it preference over non-salary benefits. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.
A Look at King Fook Holdings Limited's Growth Numbers
King Fook Holdings Limited's earnings per share (EPS) grew 120% per year over the last three years. Its revenue is up 4.0% over the last year.
Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. 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 King Fook Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with King Fook Holdings Limited for providing a total return of 38% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Mei Lin receives almost all of their compensation through a salary. Given that the company's overall performance has been reasonable, the CEO remuneration policy might not be shareholders' central point of focus in the upcoming AGM. However, if the board proposes to increase the compensation, some shareholders might have questions given that the CEO is already being paid higher than the industry.
CEO compensation is a crucial aspect to keep your eyes on but investors also need to keep their eyes open for other issues related to business performance. We did our research and spotted 3 warning signs for King Fook Holdings that investors should look into moving forward.
Switching gears from King Fook Holdings, if you're hunting for a pristine balance sheet and premium returns, this free list of high return, low debt companies is a great place to look.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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