A Quick Analysis On Karrie International Holdings' (HKG:1050) CEO Salary

Cheuk Fai Ho is the CEO of Karrie International Holdings Limited (HKG:1050), and in this article, we analyze the executive's compensation package with respect to the overall performance of the company. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Karrie International Holdings.

View our latest analysis for Karrie International Holdings

Comparing Karrie International Holdings Limited's CEO Compensation With the industry

Our data indicates that Karrie International Holdings Limited has a market capitalization of HK$2.4b, and total annual CEO compensation was reported as HK$7.5m for the year to March 2020. That's a fairly small increase of 4.4% over the previous year. We note that the salary portion, which stands at HK$4.74m constitutes the majority of total compensation received by the CEO.

On examining similar-sized companies in the industry with market capitalizations between HK$1.6b and HK$6.2b, we discovered that the median CEO total compensation of that group was HK$4.9m. Hence, we can conclude that Cheuk Fai Ho is remunerated higher than the industry median. Furthermore, Cheuk Fai Ho directly owns HK$329m 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 76% of total compensation out of all the companies we analyzed, while other remuneration made up 24% of the pie. Karrie International Holdings pays a modest slice of remuneration through salary, as compared to the broader industry. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

A Look at Karrie International Holdings Limited's Growth Numbers

Over the past three years, Karrie International Holdings Limited has seen its earnings per share (EPS) grow by 11% per year. In the last year, its revenue is up 6.2%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's nice to see revenue heading northwards, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Karrie International Holdings Limited Been A Good Investment?

With a total shareholder return of 25% over three years, Karrie International Holdings Limited shareholders would, in general, be reasonably content. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

As we noted earlier, Karrie International Holdings pays its CEO higher than the norm for similar-sized companies belonging to the same industry. But the company has impressed us with its EPS growth, over three years. We also think investor returns are steady over the same time period. You might wish to research management further, but on this analysis, considering the EPS growth, we wouldn't say CEO compensation problematic.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 2 warning signs for Karrie International Holdings (1 is significant!) that you should be aware of before investing here.

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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