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Kwong Fat Yeung has been the CEO of World-Link Logistics (Asia) Holding Limited (HKG:6083) since 2015. 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 we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for World-Link Logistics (Asia) Holding
How Does Kwong Fat Yeung's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that World-Link Logistics (Asia) Holding Limited has a market cap of HK$249m, and reported total annual CEO compensation of HK$2.7m for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$1.5m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.8m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where World-Link Logistics (Asia) Holding stands. On an industry level, roughly 74% of total compensation represents salary and 26% is other remuneration. Our data reveals that World-Link Logistics (Asia) Holding allocates salary in line with the wider market.
Thus we can conclude that Kwong Fat Yeung receives more in total compensation than the median of a group of companies in the same market, and of similar size to World-Link Logistics (Asia) Holding Limited. However, this doesn't necessarily mean the pay 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 World-Link Logistics (Asia) Holding has changed from year to year.
Is World-Link Logistics (Asia) Holding Limited Growing?
On average over the last three years, World-Link Logistics (Asia) Holding Limited has shrunk earnings per share by 19% each year (measured with a line of best fit). It achieved revenue growth of 27% over the last year.
The reduction in earnings per share, over three years, is arguably concerning. But on the other hand, revenue growth is strong, suggesting a brighter future. It's hard to reach a conclusion about business performance right now. This may be one to watch. 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.