The CEO of Great Eagle Holdings Limited (HKG:41) is Ka Shui Lo. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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.
View our latest analysis for Great Eagle Holdings
How Does Ka Shui Lo's Compensation Compare With Similar Sized Companies?
According to our data, Great Eagle Holdings Limited has a market capitalization of HK$17b, and paid its CEO total annual compensation worth HK$25m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$14m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO total compensation was HK$4.5m.
It would therefore appear that Great Eagle Holdings Limited pays Ka Shui Lo 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Great Eagle Holdings has changed over time.
Is Great Eagle Holdings Limited Growing?
Over the last three years Great Eagle Holdings Limited has grown its earnings per share (EPS) by an average of 18% per year (using a line of best fit). In the last year, its revenue is up 1.9%.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Shareholders might be interested in this free visualization of analyst forecasts.
Has Great Eagle Holdings Limited Been A Good Investment?
Since shareholders would have lost about 25% over three years, some Great Eagle Holdings Limited shareholders would surely be feeling negative emotions. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We compared total CEO remuneration at Great Eagle 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On the other hand returns to investors over the same period have probably disappointed many. Considering the per share profit growth, but keeping in mind the weak returns, we'd need more time to form a view on CEO compensation. Shareholders may want to check for free if Great Eagle Holdings insiders are buying or selling shares.