Stock Analysis

How Is World-Link Logistics (Asia) Holding's (HKG:6083) CEO Paid Relative To Peers?

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SEHK:6083
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Kwong Fat Yeung has been the CEO of World-Link Logistics (Asia) Holding Limited (HKG:6083) since 2015, and this article will examine the executive's compensation 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 World-Link Logistics (Asia) Holding.

Check out our latest analysis for World-Link Logistics (Asia) Holding

Comparing World-Link Logistics (Asia) Holding Limited's CEO Compensation With the industry

Our data indicates that World-Link Logistics (Asia) Holding Limited has a market capitalization of HK$219m, and total annual CEO compensation was reported as HK$2.5m for the year to December 2019. That's a slight decrease of 6.3% on the prior year. In particular, the salary of HK$1.74m, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the industry with market capitalizations under HK$1.6b, the reported median total CEO compensation was HK$1.2m. Accordingly, our analysis reveals that World-Link Logistics (Asia) Holding Limited pays Kwong Fat Yeung north of the industry median. Moreover, Kwong Fat Yeung also holds HK$43m worth of World-Link Logistics (Asia) Holding stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20192018Proportion (2019)
Salary HK$1.7m HK$1.5m 70%
Other HK$755k HK$1.2m 30%
Total CompensationHK$2.5m HK$2.7m100%

On an industry level, around 70% of total compensation represents salary and 30% is other remuneration. Although there is a difference in how total compensation is set, World-Link Logistics (Asia) Holding more or less reflects the market in terms of setting the salary. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

ceo-compensation
SEHK:6083 CEO Compensation November 19th 2020

A Look at World-Link Logistics (Asia) Holding Limited's Growth Numbers

Over the last three years, World-Link Logistics (Asia) Holding Limited has shrunk its earnings per share by 2.3% per year. It achieved revenue growth of 38% over the last year.

The decrease in EPS could be a concern for some investors. On the other hand, the strong revenue growth suggests the business is growing. 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 World-Link Logistics (Asia) Holding Limited Been A Good Investment?

Given the total shareholder loss of 68% over three years, many shareholders in World-Link Logistics (Asia) Holding Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

As we touched on above, World-Link Logistics (Asia) Holding 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. It concerns us that EPS growth for the company is negative, while share price gains did not materialize over the last three years. On a more positive note, the company has produced a more positive revenue growth more recently. Few would argue that it's wise for the company to pay any more, before returns improve.

While it is important to pay attention to CEO remuneration, investors should also consider other elements of the business. That's why we did some digging and identified 2 warning signs for World-Link Logistics (Asia) Holding that you should be aware of before investing.

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