How Much Is Yeebo (International Holdings)'s (HKG:259) CEO Getting Paid?

The CEO of Yeebo (International Holdings) Limited (HKG:259) is Frankie Li, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Yeebo (International Holdings) pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

Check out our latest analysis for Yeebo (International Holdings)

How Does Total Compensation For Frankie Li Compare With Other Companies In The Industry?

According to our data, Yeebo (International Holdings) Limited has a market capitalization of HK$1.8b, and paid its CEO total annual compensation worth HK$6.7m over the year to March 2020. We note that's an increase of 35% above last year. In particular, the salary of HK$4.35m, makes up a huge portion of the total compensation being paid to the CEO.

On examining similar-sized companies in the industry with market capitalizations between HK$775m and HK$3.1b, we discovered that the median CEO total compensation of that group was HK$1.9m. This suggests that Frankie Li is paid more than the median for the industry. What's more, Frankie Li holds HK$248m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Speaking on an industry level, nearly 76% of total compensation represents salary, while the remainder of 24% is other remuneration. It's interesting to note that Yeebo (International Holdings) allocates a smaller portion of compensation to salary in comparison to the broader industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Yeebo (International Holdings) Limited's Growth Numbers

Over the last three years, Yeebo (International Holdings) Limited has shrunk its earnings per share by 1.6% per year. In the last year, its revenue is down 8.7%.

A lack of EPS improvement is not good to see. This is compounded by the fact revenue is actually down on last year. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Yeebo (International Holdings) Limited Been A Good Investment?

With a three year total loss of 31% for the shareholders, Yeebo (International Holdings) Limited would certainly have some dissatisfied shareholders. Therefore, it might be upsetting for shareholders if the CEO were paid generously.

To Conclude...

As previously discussed, Frankie is compensated more than what is normal for CEOs of companies of similar size, and which belong to the same industry. Unfortunately, this doesn't look great when you see shareholder returns have been negative over the last three years. Arguably worse, we've been waiting for positive EPS growth for the last three years. Overall, with such poor performance, shareholder's would probably have questions if the company decided to give the CEO a raise.

CEO pay is simply one of the many factors that need to be considered while examining business performance. We identified 3 warning signs for Yeebo (International Holdings) (1 shouldn't be ignored!) that you should be aware of before investing here.

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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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