In This Article:
Man Yan Lee has been the CEO of Lee & Man Chemical Company Limited (HKG:746) since 2014. 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.
Check out our latest analysis for Lee & Man Chemical
How Does Man Yan Lee's Compensation Compare With Similar Sized Companies?
According to our data, Lee & Man Chemical Company Limited has a market capitalization of HK$2.9b, and paid its CEO total annual compensation worth HK$35m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$1.2m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.6m.
It would therefore appear that Lee & Man Chemical Company Limited pays Man Yan Lee 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Lee & Man Chemical, below.
Is Lee & Man Chemical Company Limited Growing?
On average over the last three years, Lee & Man Chemical Company Limited has grown earnings per share (EPS) by 45% each year (using a line of best fit). Revenue was pretty flat on last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Lee & Man Chemical Company Limited Been A Good Investment?
Boasting a total shareholder return of 87% over three years, Lee & Man Chemical Company 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.