Should You Worry About Kingboard Holdings Limited’s (HKG:148) CEO Pay?

Wing Yiu Chang is the CEO of Kingboard Holdings Limited (HKG:148). 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. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for Kingboard Holdings

How Does Wing Yiu Chang’s Compensation Compare With Similar Sized Companies?

At the time of writing, our data says that Kingboard Holdings Limited has a market cap of HK$23b, and reported total annual CEO compensation of HK$22m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$3.1m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$16b to HK$50b. The median total CEO compensation was HK$4.3m.

Thus we can conclude that Wing Yiu Chang receives more in total compensation than the median of a group of companies in the same market, and of similar size to Kingboard Holdings Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.

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

SEHK:148 CEO Compensation, September 20th 2019
SEHK:148 CEO Compensation, September 20th 2019

Is Kingboard Holdings Limited Growing?

Kingboard Holdings Limited has increased its earnings per share (EPS) by an average of 9.1% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 11%.

I would prefer it if there was revenue growth, but it is good to see EPS growth. 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 might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Kingboard Holdings Limited Been A Good Investment?

Kingboard Holdings Limited has generated a total shareholder return of 7.3% over three years, so most shareholders wouldn’t be too disappointed. But they probably wouldn’t be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary…

We examined the amount Kingboard Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.

Over the last three years returns to investors have been uninspiring, and we would have liked to see stronger business growth. Considering this, we wouldn’t want to see any big pay rises, although we’d stop short of calling the CEO compensation unfair. Shareholders may want to check for free if Kingboard Holdings insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.