Is Koradior Holdings Limited’s (HKG:3709) CEO Salary Justified?

Ming Jin is the CEO of Koradior Holdings Limited (HKG:3709). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for Koradior Holdings

How Does Ming Jin’s Compensation Compare With Similar Sized Companies?

According to our data, Koradior Holdings Limited has a market capitalization of HK$4.4b, and pays its CEO total annual compensation worth CN¥1.3m. (This is based on the year to December 2017). It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥1.3m. We examined companies with market caps from CN¥1.3b to CN¥5.4b, and discovered that the median CEO total compensation of that group was CN¥1.7m.

So Ming Jin receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Koradior Holdings has changed over time.

SEHK:3709 CEO Compensation, March 21st 2019
SEHK:3709 CEO Compensation, March 21st 2019

Is Koradior Holdings Limited Growing?

Koradior Holdings Limited has increased its earnings per share (EPS) by an average of 14% a year, over the last three years (using a line of best fit). Its revenue is up 37% over last year.

This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Koradior Holdings Limited Been A Good Investment?

With a three year total loss of 16%, Koradior Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary…

Ming Jin is paid around the same as most CEOs of similar size companies.

We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. Whatever your view on compensation, you might want to check if insiders are buying or selling Koradior Holdings shares (free trial).

Important note: Koradior Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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 editorial-team@simplywallst.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.