In This Article:
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The CEO of Paladin Limited (HKG:495) is James Oung. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. 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 Paladin
How Does James Oung's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Paladin Limited has a market cap of HK$214m, and is paying total annual CEO compensation of HK$3.2m. (This number is for the twelve months until June 2018). While we always look at total compensation first, we note that the salary component is less, at HK$1.9m. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
Thus we can conclude that James Oung receives more in total compensation than the median of a group of companies in the same market, and of similar size to Paladin Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at Paladin has changed over time.
Is Paladin Limited Growing?
Over the last three years Paladin Limited has shrunk its earnings per share by an average of 117% per year (measured with a line of best fit). Its revenue is up 25% over last year.
Sadly for shareholders, earnings per share are actually down, over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. 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, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Paladin Limited Been A Good Investment?
Since shareholders would have lost about 52% over three years, some Paladin Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Paladin Limited pays its CEO, and compared it to the amount paid by similar sized companies. We found that it pays well over the median amount paid in the benchmark group.