In This Article:
Chi Wan became the CEO of HK Electric Investments and HK Electric Investments Limited (HKG:2638) in 2013. 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. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for HK Electric Investments and HK Electric Investments
How Does Chi Wan’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that HK Electric Investments and HK Electric Investments Limited has a market cap of HK$66.5b, and is paying total annual CEO compensation of HK$16m. That’s a notable increase of 9.0% on last year. We looked at a group of companies with market capitalizations from HK$31.4b to HK$94.1b, and the median CEO compensation was HK$3m.
As you can see, Chi Wan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean HK Electric Investments and HK Electric Investments 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.
You can see a visual representation of the CEO compensation at HK Electric Investments and HK Electric Investments, below.
Is HK Electric Investments and HK Electric Investments Limited Growing?
Over the last three years HK Electric Investments and HK Electric Investments Limited has shrunk its earnings per share by an average of 3.4% per year. It achieved revenue growth of 3.5% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. The modest increase in revenue in the last year isn’t enough to make me overlook the disappointing change in earnings per share. It’s hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has HK Electric Investments and HK Electric Investments Limited Been A Good Investment?
Most shareholders would probably be pleased with HK Electric Investments and HK Electric Investments Limited for providing a total return of 49% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.