In This Article:
The CEO of Central Development Holdings Limited (HKG:475) is Hubert Chan. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Central Development Holdings
How Does Hubert Chan's Compensation Compare With Similar Sized Companies?
According to our data, Central Development Holdings Limited has a market capitalization of HK$271m, and paid its CEO total annual compensation worth HK$3.3m over the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.0m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
Thus we can conclude that Hubert Chan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Central Development Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Central Development Holdings has changed from year to year.
Is Central Development Holdings Limited Growing?
Central Development Holdings Limited has increased its earnings per share (EPS) by an average of 8.5% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 236%.
It's great to see that revenue growth is strong. Combined with modest EPS growth, we get a good impression of the company. So while I'd stop short of saying growth is absolutely outstanding, there are definitely some clear positives! We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Central Development Holdings Limited Been A Good Investment?
Since shareholders would have lost about 46% over three years, some Central Development Holdings Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
We examined the amount Central Development Holdings 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.