Here's What We Think About KWG Group Holdings Limited's (HKG:1813) CEO Pay

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The CEO of KWG Group Holdings Limited (HKG:1813) is Jian Kong. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for KWG Group Holdings

How Does Jian Kong's Compensation Compare With Similar Sized Companies?

According to our data, KWG Group Holdings Limited has a market capitalization of HK$29b, and pays its CEO total annual compensation worth CN¥4.8m. (This number is for the twelve months until December 2017). While we always look at total compensation first, we note that the salary component is less, at CN¥3.5m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥13b to CN¥43b. The median total CEO compensation was CN¥2.7m.

It would therefore appear that KWG Group Holdings Limited pays Jian Kong 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 KWG Group Holdings has changed over time.

SEHK:1813 CEO Compensation, April 7th 2019
SEHK:1813 CEO Compensation, April 7th 2019

Is KWG Group Holdings Limited Growing?

On average over the last three years, KWG Group Holdings Limited has grown earnings per share (EPS) by 4.8% each year (using a line of best fit). It saw its revenue drop -35% over the last year.

I would prefer it if there was revenue growth, but it is good to see EPS growth. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. It could be important to check this free visual depiction of what analysts expect for the future.

Has KWG Group Holdings Limited Been A Good Investment?

Boasting a total shareholder return of 136% over three years, KWG Group Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.

In Summary...

We compared total CEO remuneration at KWG Group 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.

Over the last three years returns to investors have been great, though we might have liked stronger business growth. So, considering these tasty returns, the CEO compensation may be quite appropriate. So you may want to check if insiders are buying KWG Group Holdings shares with their own money (free access).

Important note: KWG Group Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.

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.

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