Kin Siu Ng is the CEO of Dafy Holdings Limited (HKG:1826). 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. The aim of all this is to consider the appropriateness of CEO pay levels.

View our latest analysis for Dafy Holdings

How Does Kin Siu Ng's Compensation Compare With Similar Sized Companies?

Our data indicates that Dafy Holdings Limited is worth HK$1.5b, and total annual CEO compensation was reported as HK$3.6m for the year to December 2018. Notably, the salary of HK$3.5m is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$779m to HK$3.1b. The median total CEO compensation was HK$2.3m.

It would therefore appear that Dafy Holdings Limited pays Kin Siu Ng 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 better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at Dafy Holdings has changed from year to year.

Is Dafy Holdings Limited Growing?

Over the last three years Dafy Holdings Limited has grown its earnings per share (EPS) by an average of 43% per year (using a line of best fit). In the last year, its revenue is up 26%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. 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 you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Dafy Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 382% over three years, Dafy Holdings 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 Dafy 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. So, considering this good performance, the CEO compensation may be quite appropriate. Shareholders may want to check for free if Dafy Holdings insiders are buying or selling shares.