In This Article:
Ho Kwok is the CEO of Chaoda Modern Agriculture (Holdings) Limited (HKG:682). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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 process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Chaoda Modern Agriculture (Holdings)
How Does Ho Kwok's Compensation Compare With Similar Sized Companies?
According to our data, Chaoda Modern Agriculture (Holdings) Limited has a market capitalization of HK$181m, and paid its CEO total annual compensation worth CN¥1.5m over the year to June 2018. Notably, the salary of CN¥1.4m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.6m.
That means Ho Kwok receives fairly typical remuneration for the CEO of a company that size. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at Chaoda Modern Agriculture (Holdings) has changed over time.
Is Chaoda Modern Agriculture (Holdings) Limited Growing?
Chaoda Modern Agriculture (Holdings) Limited has increased its earnings per share (EPS) by an average of 64% a year, over the last three years (using a line of best fit). Its revenue is down 79% over last year.
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. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Chaoda Modern Agriculture (Holdings) Limited Been A Good Investment?
With a three year total loss of 71%, Chaoda Modern Agriculture (Holdings) Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
Ho Kwok is paid around the same as most CEOs of similar size companies.
We like that the company is growing EPS, but we cannot say the same about the lacklustre shareholder returns (over the last three years). Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Chaoda Modern Agriculture (Holdings) (free visualization of insider trades).