In This Article:
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
Kin Kan has been the CEO of Perfect Group International Holdings Limited (HKG:3326) since 2015. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Perfect Group International Holdings
How Does Kin Kan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Perfect Group International Holdings Limited is worth HK$972m, and total annual CEO compensation is HK$3.7m. (This figure is for the year to 2017). While we always look at total compensation first, we note that the salary component is less, at HK$3.5m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.7m.
As you can see, Kin Kan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Perfect Group International Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Perfect Group International Holdings has changed from year to year.
Is Perfect Group International Holdings Limited Growing?
Perfect Group International Holdings Limited has reduced its earnings per share by an average of 40% a year, over the last three years (measured with a line of best fit). It achieved revenue growth of 17% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. While the revenue growth is good to see, it is outweighed by the fact that earnings per share are down, over three years. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Perfect Group International Holdings Limited Been A Good Investment?
Perfect Group International Holdings Limited has served shareholders reasonably well, with a total return of 11% over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.