Does China All Access (Holdings) Limited's (HKG:633) CEO Salary Reflect Performance?

Kwok Shao is the CEO of China All Access (Holdings) Limited (HKG:633). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.

Check out our latest analysis for China All Access (Holdings)

How Does Kwok Shao's Compensation Compare With Similar Sized Companies?

According to our data, China All Access (Holdings) Limited has a market capitalization of HK$957m, and pays its CEO total annual compensation worth CN¥4.3m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥2.3m. We took a group of companies with market capitalizations below CN¥1.3b, and calculated the median CEO total compensation to be CN¥1.3m.

As you can see, Kwok Shao is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China All Access (Holdings) Limited is paying too much. 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 China All Access (Holdings) has changed over time.

Is China All Access (Holdings) Limited Growing?

China All Access (Holdings) Limited has reduced its earnings per share by an average of 30% a year, over the last three years (measured with a line of best fit). Its revenue is down -37% over last year.

Sadly for shareholders, earnings per share are actually down, over three years. And the impression is worse when you consider revenue is down year-on-year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has China All Access (Holdings) Limited Been A Good Investment?

Given the total loss of 78% over three years, many shareholders in China All Access (Holdings) Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared the total CEO remuneration paid by China All Access (Holdings) Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.

Neither earnings per share nor revenue have been growing sufficiently fast to impress us, over the last three years.

Arguably worse, investors are without a positive return for the last three years. This analysis suggests to us that the CEO is paid too generously! Shareholders may want to check for free if China All Access (Holdings) insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist 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.