How Much Is Kwong Lung Enterprise Co., Ltd. (GTSM:8916) CEO Getting Paid?

Ho-Po Chan became the CEO of Kwong Lung Enterprise Co., Ltd. (GTSM:8916) in 2012, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also assess whether Kwong Lung Enterprise pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

View our latest analysis for Kwong Lung Enterprise

How Does Total Compensation For Ho-Po Chan Compare With Other Companies In The Industry?

At the time of writing, our data shows that Kwong Lung Enterprise Co., Ltd. has a market capitalization of NT$6.0b, and reported total annual CEO compensation of NT$18m for the year to December 2019. That's just a smallish increase of 6.4% on last year. Notably, the salary which is NT$12.7m, represents most of the total compensation being paid.

On examining similar-sized companies in the industry with market capitalizations between NT$2.9b and NT$11b, we discovered that the median CEO total compensation of that group was NT$18m. From this we gather that Ho-Po Chan is paid around the median for CEOs in the industry.

On an industry level, around 78% of total compensation represents salary and 22% is other remuneration. Kwong Lung Enterprise sets aside a smaller share of compensation for salary, in comparison to the overall 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.

Kwong Lung Enterprise Co., Ltd.'s Growth

Over the past three years, Kwong Lung Enterprise Co., Ltd. has seen its earnings per share (EPS) grow by 16% per year. Its revenue is down 12% over the previous year.

This demonstrates that the company has been improving recently and is good news for the shareholders. While it would be good to see revenue growth, profits matter more in the end. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Kwong Lung Enterprise Co., Ltd. Been A Good Investment?

With a total shareholder return of 9.4% over three years, Kwong Lung Enterprise Co., Ltd. has done okay by shareholders. But they would probably prefer not to see CEO compensation far in excess of the median.

To Conclude...

As previously discussed, Ho-Po is compensated close to the median for companies of its size, and which belong to the same industry. However, it's admirable that over the last three years, EPS growth for the company has been impressive, though the same can't be said for investor returns. So considering these factors, we think the compensation is probably quite reasonable, but investor returns need a boost moving forward.

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 3 warning signs for Kwong Lung Enterprise that investors should think about before committing capital to this stock.

Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies that have HIGH return on equity and low debt.

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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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