In This Article:
In 2013 Man Bun Lee was appointed CEO of Lee and Man Paper Manufacturing Limited (HKG:2314). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Lee and Man Paper Manufacturing
How Does Man Bun Lee’s Compensation Compare With Similar Sized Companies?
Our data indicates that Lee and Man Paper Manufacturing Limited is worth HK$30b, and total annual CEO compensation is HK$17m. We looked at a group of companies with market capitalizations from HK$16b to HK$50b, and the median CEO compensation was HK$4.0m.
It would therefore appear that Lee and Man Paper Manufacturing Limited pays Man Bun Lee 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 better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Lee and Man Paper Manufacturing, below.
Is Lee and Man Paper Manufacturing Limited Growing?
Over the last three years Lee and Man Paper Manufacturing Limited has grown its earnings per share (EPS) by an average of 37% per year. It achieved revenue growth of 44% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business.
You might want to check this free visual report on analyst forecasts for future earnings.
Has Lee and Man Paper Manufacturing Limited Been A Good Investment?
I think that the total shareholder return of 64%, over three years, would leave most Lee and Man Paper Manufacturing Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
We examined the amount Lee and Man Paper Manufacturing Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. Even better, returns to shareholders have been plentiful, over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Lee and Man Paper Manufacturing Limited insiders are buying or selling shares.