In This Article:
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Victor Li became the CEO of CK Asset Holdings Limited (HKG:1113) in 2015. First, this article will compare CEO compensation with compensation at other large companies. Then we’ll look at a snap shot of the business growth. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for CK Asset Holdings
How Does Victor Li’s Compensation Compare With Similar Sized Companies?
According to our data, CK Asset Holdings Limited has a market capitalization of HK$242b, and pays its CEO total annual compensation worth HK$90m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$53m. We took a group of companies with market capitalizations over HK$63b, and calculated the median CEO compensation to be HK$5.8m. There aren’t very many mega-cap companies, so we had to take a wide range to get a meaningful comparison figure.
It would therefore appear that CK Asset Holdings Limited pays Victor Li more than the median CEO remuneration at large companies, in the same market. However, this fact alone doesn’t mean the remuneration is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at CK Asset Holdings has changed over time.
Is CK Asset Holdings Limited Growing?
Over the last three years CK Asset Holdings Limited has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). In the last year, its revenue is down -36%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has CK Asset Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 79% over three years, CK Asset Holdings 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 examined the amount CK Asset Holdings Limited pays its CEO, and compared it to the amount paid by other large companies. We found that it pays well over the median amount paid in the benchmark group.