The CEO of NagaCorp Ltd. (HKG:3918) is Lip Chen. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.

Check out our latest analysis for NagaCorp

How Does Lip Chen's Compensation Compare With Similar Sized Companies?

Our data indicates that NagaCorp Ltd. is worth HK$59b, and total annual CEO compensation was reported as US$870k for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at US$720k. We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$582k.

It would therefore appear that NagaCorp Ltd. pays Lip Chen 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 NagaCorp has changed over time.

Is NagaCorp Ltd. Growing?

On average over the last three years, NagaCorp Ltd. has grown earnings per share (EPS) by 6.2% each year (using a line of best fit). In the last year, its revenue is up 27%.

It's hard to interpret the strong revenue growth as anything other than a positive. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Shareholders might be interested in this free visualization of analyst forecasts.

Has NagaCorp Ltd. Been A Good Investment?

I think that the total shareholder return of 225%, over three years, would leave most NagaCorp Ltd. shareholders smiling. 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.

In Summary...

We compared the total CEO remuneration paid by NagaCorp Ltd., and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.

While we generally prefer to see stronger EPS growth, there's no arguing with the strong returns to shareholders, over the last three years. As a result of the juicy return to investors, the CEO remuneration may well be quite reasonable. So you may want to check if insiders are buying NagaCorp shares with their own money (free access).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.