In This Article:
In 2005, James Lee was appointed CEO of National Electronics Holdings Limited (HKG:213). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for National Electronics Holdings
How Does James Lee's Compensation Compare With Similar Sized Companies?
According to our data, National Electronics Holdings Limited has a market capitalization of HK$1.1b, and paid its CEO total annual compensation worth HK$11m over the year to March 2019. Notably, the salary of HK$11m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where National Electronics Holdings stands. On an industry level, roughly 89% of total compensation represents salary and 11% is other remuneration. National Electronics Holdings is focused on going down a more traditional approach and is paying a higher portion of compensation through salary, as compared to non-salary benefits.
It would therefore appear that National Electronics Holdings Limited pays James 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. 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 National Electronics Holdings has changed over time.
Is National Electronics Holdings Limited Growing?
On average over the last three years, National Electronics Holdings Limited has seen earnings per share (EPS) move in a favourable direction by 3.9% each year (using a line of best fit). Its revenue is down 41% over last year.
I generally like to see a little revenue growth, but the improvement in EPS is good. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has National Electronics Holdings Limited Been A Good Investment?
National Electronics Holdings Limited has generated a total shareholder return of 9.6% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.