Yahoo Finance Is AIA Group Limited's (HKG:1299) CEO Paid At A Competitive Rate?
Keng Hooi Ng became the CEO of AIA Group Limited (HKG:1299) in 2017. This analysis aims first to contrast CEO compensation with other large companies. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for AIA Group
How Does Keng Hooi Ng's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that AIA Group Limited has a market cap of HK$1t, and reported total annual CEO compensation of US$9.5m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$1.7m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We looked at a group of companies with market capitalizations over US$8.0b and the median CEO total compensation was US$941k. Once you start looking at very large companies, you need to take a broader range, because there simply aren't that many of them.
As you can see, Keng Hooi Ng is paid more than the median CEO pay at large companies, in the same market. However, this does not necessarily mean AIA Group 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 AIA Group has changed over time.
Is AIA Group Limited Growing?
Over the last three years AIA Group Limited has grown its earnings per share (EPS) by an average of 4.8% per year (using a line of best fit). Its revenue is up 8.0% over last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. It could be important to check this free visual depiction of what analysts expect for the future.
Has AIA Group Limited Been A Good Investment?
Boasting a total shareholder return of 77% over three years, AIA Group Limited has done well by shareholders. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at AIA Group Limited with the amount paid at other large companies. As discussed above, we discovered that the company pays more than the median of that group.
One might like to have seen stronger growth, but shareholder returns have been pleasing, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling AIA Group (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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. Thank you for reading.
