In This Article:
In 1987 Wing Chan was appointed CEO of Yangtzekiang Garment Limited (HKG:294). First, this article will compare CEO compensation with compensation at similar sized companies. Then we’ll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Yangtzekiang Garment
How Does Wing Chan’s Compensation Compare With Similar Sized Companies?
According to our data, Yangtzekiang Garment Limited has a market capitalization of HK$620m, and pays its CEO total annual compensation worth HK$2.0m. (This is based on the year to 2018). Notably, the salary of HK$1.9m is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO compensation was HK$1.7m.
So Wing Chan receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn’t tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Yangtzekiang Garment has changed from year to year.
Is Yangtzekiang Garment Limited Growing?
Over the last three years Yangtzekiang Garment Limited has grown its earnings per share (EPS) by an average of 67% per year. In the last year, its revenue is down -1.5%.
This shows that the company has improved itself over the last few years. Good news for shareholders. Revenue growth is a real positive for growth, but ultimately profits are more important.
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 Yangtzekiang Garment Limited Been A Good Investment?
Yangtzekiang Garment Limited has served shareholders reasonably well, with a total return of 28% over three years. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary…
Wing Chan is paid around what is normal the leaders of comparable size companies.
Shareholder returns could be better but shareholders would be pleased with the positive EPS growth. So considering these factors, we think the CEO pay is probably quite reasonable. Whatever your view on compensation, you might want to check if insiders are buying or selling Yangtzekiang Garment shares (free trial).
Or you might prefer gaze upon this detailed graph of past earnings, revenue and cash flow .
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.