In This Article:
Mars Ho is the CEO of Austar Lifesciences Limited (HKG:6118). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Austar Lifesciences
How Does Mars Ho's Compensation Compare With Similar Sized Companies?
According to our data, Austar Lifesciences Limited has a market capitalization of HK$2.6b, and paid its CEO total annual compensation worth CN¥880k over the year to December 2018. Notably, the salary of CN¥865k is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of CN¥1.4b to CN¥5.6b. The median total CEO compensation was CN¥2.3m.
Most shareholders would consider it a positive that Mars Ho takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.
You can see, below, how CEO compensation at Austar Lifesciences has changed over time.
Is Austar Lifesciences Limited Growing?
Austar Lifesciences Limited has increased its earnings per share (EPS) by an average of 32% a year, over the last three years (using a line of best fit). In the last year, its revenue is up 53%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Austar Lifesciences Limited Been A Good Investment?
Boasting a total shareholder return of 341% over three years, Austar Lifesciences 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...
It appears that Austar Lifesciences Limited remunerates its CEO below most similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. The pleasing shareholder returns are the cherry on top; you might even consider that Mars Ho deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. Whatever your view on compensation, you might want to check if insiders are buying or selling Austar Lifesciences shares (free trial).