In 2012 Derek Zen was appointed CEO of Build King Holdings Limited (HKG:240). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Build King Holdings

How Does Derek Zen's Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Build King Holdings Limited has a market cap of HK$1.4b, and is paying total annual CEO compensation of HK$18m. (This number is for the twelve months until December 2018). Notably, the salary of HK$18m is the vast majority of the CEO compensation. We examined companies with market caps from HK$781m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.1m.

As you can see, Derek Zen is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Build King Holdings Limited is paying too much. 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 Build King Holdings has changed from year to year.

Is Build King Holdings Limited Growing?

Over the last three years Build King Holdings Limited has grown its earnings per share (EPS) by an average of 49% per year (using a line of best fit). In the last year, its revenue is up 5.3%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's also good to see modest revenue growth, suggesting the underlying business is healthy. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Build King Holdings Limited Been A Good Investment?

Most shareholders would probably be pleased with Build King Holdings Limited for providing a total return of 361% over three years. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at Build King Holdings Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Build King Holdings.

If you want to buy a stock that is better than Build King Holdings, this free list of high return, low debt companies is a great place to look.

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.