In 2017 Cheong Yeun Lee was appointed CEO of ICO Group Limited (HKG:1460). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
How Does Cheong Yeun Lee's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that ICO Group Limited has a market cap of HK$249m, and reported total annual CEO compensation of HK$2.4m for the year to March 2019. Notably, the salary of HK$2.4m is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.
As you can see, Cheong Yeun Lee is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean ICO Group Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at ICO Group, below.
Is ICO Group Limited Growing?
ICO Group Limited has increased its earnings per share (EPS) by an average of 31% a year, over the last three years (using a line of best fit). It achieved revenue growth of 51% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has ICO Group Limited Been A Good Investment?
Given the total loss of 82% over three years, many shareholders in ICO Group Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
We compared total CEO remuneration at ICO Group Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at ICO Group.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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