The CEO of China All Access (Holdings) Limited (HKG:633) is Kwok Keung Shao, and this article examines the executive's compensation against the backdrop of overall company performance. This analysis will also evaluate the appropriateness of CEO compensation when taking into account the earnings and shareholder returns of the company.
How Does Total Compensation For Kwok Keung Shao Compare With Other Companies In The Industry?
According to our data, China All Access (Holdings) Limited has a market capitalization of HK$324m, and paid its CEO total annual compensation worth CN¥4.0m over the year to December 2019. We note that's an increase of 45% above last year. We note that the salary portion, which stands at CN¥2.16m constitutes the majority of total compensation received by the CEO.
For comparison, other companies in the industry with market capitalizations below HK$1.6b, reported a median total CEO compensation of CN¥1.6m. This suggests that Kwok Keung Shao is paid more than the median for the industry.
On an industry level, around 67% of total compensation represents salary and 33% is other remuneration. China All Access (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.
China All Access (Holdings) Limited's Growth
Over the last three years, China All Access (Holdings) Limited has shrunk its earnings per share by 96% per year. In the last year, its revenue is up 78%.
The decrease in EPS could be a concern for some investors. But on the other hand, revenue growth is strong, suggesting a brighter future. These two metrics are moving in different directions, so while it's hard to be confident judging performance, we think the stock is worth watching. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has China All Access (Holdings) Limited Been A Good Investment?
Given the total shareholder loss of 94% over three years, many shareholders in China All Access (Holdings) Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
As we touched on above, China All Access (Holdings) Limited is currently paying its CEO higher than the median pay for CEOs of companies belonging to the same industry and with similar market capitalizations. Meanwhile, the company has been unable to show any EPS growth, and shareholder returns are also in the red. In contrast, revenue growth for the company has been showing a positive trend. Suffice it to say, we don't think the CEO is underpaid!
CEO pay is simply one of the many factors that need to be considered while examining business performance. In our study, we found 2 warning signs for China All Access (Holdings) you should be aware of, and 1 of them is a bit concerning.
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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