Yahoo Finance Our Take On Liu Chong Hing Investment Limited’s (HKG:194) CEO Salary
Lit Chi Liu has been the CEO of Liu Chong Hing Investment Limited (HKG:194) since 2014. First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. 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 Liu Chong Hing Investment
How Does Lit Chi Liu’s Compensation Compare With Similar Sized Companies?
According to our data, Liu Chong Hing Investment Limited has a market capitalization of HK$4.2b, and pays its CEO total annual compensation worth HK$9.8m. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at HK$8.8m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$1.6b to HK$6.3b. The median total CEO compensation was HK$2.3m.
It would therefore appear that Liu Chong Hing Investment Limited pays Lit Chi Liu more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Liu Chong Hing Investment, below.
Is Liu Chong Hing Investment Limited Growing?
On average over the last three years, Liu Chong Hing Investment Limited has grown earnings per share (EPS) by 28% each year. It achieved revenue growth of 124% over the last year.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Liu Chong Hing Investment Limited Been A Good Investment?
Boasting a total shareholder return of 35% over three years, Liu Chong Hing Investment Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount Liu Chong Hing Investment Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. So you may want to check if insiders are buying Liu Chong Hing Investment shares with their own money (free access).
Or you might prefer this data-rich interactive visualization of historic revenue and earnings.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
