Yahoo Finance Does Yu Tak International Holdings Limited's (HKG:8048) CEO Salary Compare Well With Others?
Xia Li became the CEO of Yu Tak International Holdings Limited (HKG:8048) in 2015. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Yu Tak International Holdings
How Does Xia Li's Compensation Compare With Similar Sized Companies?
Our data indicates that Yu Tak International Holdings Limited is worth HK$132m, and total annual CEO compensation was reported as HK$1.1m for the year to December 2019. That's just a smallish increase of 7.4% on last year. We think total compensation is more important but we note that the CEO salary is lower, at HK$985k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
Next, let's break down remuneration compositions to understand how the industry and company compare with each other. Speaking on an industry level, we can see that nearly 81% of total compensation represents salary, while the remainder of 19% is other remuneration. So it seems like there isn't a significant difference between Yu Tak International Holdings and the broader market, in terms of salary allocation in the overall compensation package.
At first glance this seems like a real positive for shareholders, since Xia Li is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business. You can see a visual representation of the CEO compensation at Yu Tak International Holdings, below.
Is Yu Tak International Holdings Limited Growing?
On average over the last three years, Yu Tak International Holdings Limited has seen earnings per share (EPS) move in a favourable direction by 25% each year (using a line of best fit). It saw its revenue drop 8.4% over the last year.
This demonstrates that the company has been improving recently. A good result. While it would be good to see revenue growth, profits matter more in the end. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yu Tak International Holdings Limited Been A Good Investment?
Given the total loss of 42% over three years, many shareholders in Yu Tak International 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.
In Summary...
Yu Tak International Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. Few would deny that the total shareholder return over the last three years could have been a lot better. So while we don't think, Xia Li is paid too much, shareholders may hope that business performance translates to investment returns before pay rises are given out. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. On another note, we've spotted 3 warning signs for Yu Tak International Holdings that investors should look into moving forward.
Of course, you might find a fantastic investment by looking elsewhere. 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. Thank you for reading.
