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William Cheng is the CEO of Magnificent Hotel Investments Limited (HKG:201). 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. 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 Magnificent Hotel Investments
How Does William Cheng's Compensation Compare With Similar Sized Companies?
According to our data, Magnificent Hotel Investments Limited has a market capitalization of HK$1.5b, and pays its CEO total annual compensation worth HK$7.0m. (This is based on the year to December 2018). That's a fairly small increase of 0.01% on year before. While we always look at total compensation first, we note that the salary component is less, at HK$5.9m. We examined companies with market caps from HK$783m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.1m.
It would therefore appear that Magnificent Hotel Investments Limited pays William Cheng 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.
The graphic below shows how CEO compensation at Magnificent Hotel Investments has changed from year to year.
Is Magnificent Hotel Investments Limited Growing?
Over the last three years Magnificent Hotel Investments Limited has grown its earnings per share (EPS) by an average of 36% per year (using a line of best fit). It achieved revenue growth of 11% over the last year.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Magnificent Hotel Investments Limited Been A Good Investment?
Magnificent Hotel Investments Limited has generated a total shareholder return of 9.9% over three years, so most shareholders wouldn't be too disappointed. But they would probably prefer not to see CEO compensation far in excess of the median.