Boon Seng Tan has been the CEO of Lee Hing Development Limited (HKG:68) since 1989. 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. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Lee Hing Development
How Does Boon Seng Tan’s Compensation Compare With Similar Sized Companies?
According to our data, Lee Hing Development Limited has a market capitalization of HK$829m, and pays its CEO total annual compensation worth HK$5.0m. That’s a modest increase of 4.5% on the prior year year. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO compensation to be HK$1.7m.
Thus we can conclude that Boon Seng Tan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Lee Hing Development Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Lee Hing Development has changed from year to year.
Is Lee Hing Development Limited Growing?
Lee Hing Development Limited has reduced its earnings per share by an average of 49% a year, over the last three years. In the last year, its revenue is down -45%.
Sadly for shareholders, earnings per share are actually down, over three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO.
Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Lee Hing Development Limited Been A Good Investment?
Since shareholders would have lost about 16% over three years, some Lee Hing Development Limited shareholders would surely be feeling negative emotions. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at Lee Hing Development 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.