Does Karrie International Holdings Limited's (HKG:1050) CEO Pay Compare Well With Peers?

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Cheuk Ho is the CEO of Karrie International Holdings Limited (HKG:1050). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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 Karrie International Holdings

How Does Cheuk Ho's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Karrie International Holdings Limited has a market cap of HK$2.3b, and is paying total annual CEO compensation of HK$7.1m. (This number is for the twelve months until March 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$4.7m. We examined companies with market caps from HK$785m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$1.7m.

It would therefore appear that Karrie International Holdings Limited pays Cheuk Ho 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 get a better idea of how generous the pay is by looking at the performance of the underlying business.

You can see, below, how CEO compensation at Karrie International Holdings has changed over time.

SEHK:1050 CEO Compensation, March 27th 2019
SEHK:1050 CEO Compensation, March 27th 2019

Is Karrie International Holdings Limited Growing?

Karrie International Holdings Limited has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). In the last year, its revenue is down -1.8%.

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. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Karrie International Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Karrie International Holdings Limited for providing a total return of 197% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at Karrie International Holdings Limited with the amount paid at companies with a similar market capitalization. As discussed above, we discovered that the company pays more than the median of that group.