In This Article:
Wa Hoi has been the CEO of Powerlong Real Estate Holdings Limited (HKG:1238) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we’ll consider growth that the business demonstrates. 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 Powerlong Real Estate Holdings
How Does Wa Hoi’s Compensation Compare With Similar Sized Companies?
According to our data, Powerlong Real Estate Holdings Limited has a market capitalization of HK$12b, and pays its CEO total annual compensation worth CN¥1.0m. We note that’s an increase of 24% above last year. We looked at a group of companies with market capitalizations from CN¥6.9b to CN¥22b, and the median CEO compensation was CN¥3.2m.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it’s important we delve into the performance of the actual business.
The graphic below shows how CEO compensation at Powerlong Real Estate Holdings has changed from year to year.
Is Powerlong Real Estate Holdings Limited Growing?
On average over the last three years, Powerlong Real Estate Holdings Limited has grown earnings per share (EPS) by 22% each year. It achieved revenue growth of 9.8% over the last year.
This demonstrates that the company has been improving recently. A good result. It’s good to see a bit of revenue growth, as this suggests the business is able to grow sustainably.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has Powerlong Real Estate Holdings Limited Been A Good Investment?
I think that the total shareholder return of 134%, over three years, would leave most Powerlong Real Estate Holdings Limited shareholders smiling. 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…
It appears that Powerlong Real Estate Holdings Limited remunerates its CEO below most similar sized companies. Considering the underlying business is growing earnings, this would suggest the pay is modest. The strong history of shareholder returns might even have some thinking that Wa Hoi deserves a raise!
It’s not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares.