In This Article:
Chai Yip has been the CEO of Lai Sun Garment (International) Limited (HKG:191) since 2013. First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. 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.
Check out our latest analysis for Lai Sun Garment (International)
How Does Chai Yip’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lai Sun Garment (International) Limited is worth HK$4.6b, and total annual CEO compensation is HK$7.1m. (This number is for the twelve months until 2018). That’s less than last year. Notably, the salary of HK$7.0m 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 HK$1.6b to HK$6.3b. The median total CEO compensation was HK$2.3m.
It would therefore appear that Lai Sun Garment (International) Limited pays Chai Yip more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn’t mean the remuneration is too high. 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 Lai Sun Garment (International), below.
Is Lai Sun Garment (International) Limited Growing?
On average over the last three years, Lai Sun Garment (International) Limited has grown earnings per share (EPS) by 25% each year. In the last year, its revenue is up 28%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Lai Sun Garment (International) Limited Been A Good Investment?
Boasting a total shareholder return of 187% over three years, Lai Sun Garment (International) Limited has done well by shareholders. This strong performance might mean some shareholders don’t mind if the CEO is paid more than is normal for a company of its size.
In Summary…
We compared the total CEO remuneration paid by Lai Sun Garment (International) Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.