Why Greenland Hong Kong Holdings Limited's (HKG:337) CEO Pay Matters To You
In 2013 Jun Chen was appointed CEO of Greenland Hong Kong Holdings Limited (HKG:337). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Greenland Hong Kong Holdings
How Does Jun Chen's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Greenland Hong Kong Holdings Limited has a market cap of HK$8.5b, and reported total annual CEO compensation of CN¥6.9m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥4.7m. We looked at a group of companies with market capitalizations from CN¥2.8b to CN¥11b, and the median CEO total compensation was CN¥3.5m.
As you can see, Jun Chen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Greenland Hong Kong Holdings Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Greenland Hong Kong Holdings has changed from year to year.
Is Greenland Hong Kong Holdings Limited Growing?
Over the last three years Greenland Hong Kong Holdings Limited has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). It achieved revenue growth of 5.1% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's also good to see modest revenue growth, suggesting the underlying business is healthy. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Greenland Hong Kong Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Greenland Hong Kong Holdings Limited for providing a total return of 66% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We examined the amount Greenland Hong Kong Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.
However, the earnings per share growth over three years is certainly impressive. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Greenland Hong Kong Holdings.
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.
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.
