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Lawrence Chia is the CEO of Pico Far East Holdings Limited (HKG:752). 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.
See our latest analysis for Pico Far East Holdings
How Does Lawrence Chia's Compensation Compare With Similar Sized Companies?
Our data indicates that Pico Far East Holdings Limited is worth HK$3.2b, and total annual CEO compensation is HK$15m. (This number is for the twelve months until October 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$6.8m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$2.4m.
It would therefore appear that Pico Far East Holdings Limited pays Lawrence Chia 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 better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Pico Far East Holdings has changed from year to year.
Is Pico Far East Holdings Limited Growing?
Over the last three years Pico Far East Holdings Limited has shrunk its earnings per share by an average of 4.3% per year (measured with a line of best fit). Its revenue is up 5.6% over last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The fairly low revenue growth fails to impress given that the earnings per share is down. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. You might want to check this free visual report on analyst forecasts for future earnings.
Has Pico Far East Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Pico Far East Holdings Limited for providing a total return of 42% over three years. 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.