Does Easyknit International Holdings Limited's (HKG:1218) CEO Pay Reflect Performance?

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In 2017 Ricky Tse was appointed CEO of Easyknit International Holdings Limited (HKG:1218). 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 process should give us an idea about how appropriately the CEO is paid.

See our latest analysis for Easyknit International Holdings

How Does Ricky Tse's Compensation Compare With Similar Sized Companies?

According to our data, Easyknit International Holdings Limited has a market capitalization of HK$347m, and paid its CEO total annual compensation worth HK$1.5m over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$1.5m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.

So Ricky Tse is paid around the average of the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.

You can see a visual representation of the CEO compensation at Easyknit International Holdings, below.

SEHK:1218 CEO Compensation, December 31st 2019
SEHK:1218 CEO Compensation, December 31st 2019

Is Easyknit International Holdings Limited Growing?

Easyknit International Holdings Limited has increased its earnings per share (EPS) by an average of 88% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 358%.

This demonstrates that the company has been improving recently. A good result. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Easyknit International Holdings Limited Been A Good Investment?

Easyknit International Holdings Limited has not done too badly by shareholders, with a total return of 2.8%, over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.

In Summary...

Ricky Tse is paid around what is normal the leaders of comparable size companies.

The company is growing EPS but shareholder returns have been sound but not amazing. So upon reflection one could argue that the CEO pay is quite reasonable. So you may want to check if insiders are buying Easyknit International Holdings shares with their own money (free access).