In This Article:
In 2011 Kong Au-Yeung was appointed CEO of Perfect Shape Medical Limited (HKG:1830). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Perfect Shape Medical
How Does Kong Au-Yeung's Compensation Compare With Similar Sized Companies?
Our data indicates that Perfect Shape Medical Limited is worth HK$3.1b, and total annual CEO compensation was reported as HK$13m for the year to March 2019. That's below the compensation, last year. While we always look at total compensation first, we note that the salary component is less, at . We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO total compensation was HK$2.3m.
It would therefore appear that Perfect Shape Medical Limited pays Kong Au-Yeung 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. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Perfect Shape Medical has changed over time.
Is Perfect Shape Medical Limited Growing?
Over the last three years Perfect Shape Medical Limited has grown its earnings per share (EPS) by an average of 45% per year (using a line of best fit). Its revenue is up 32% over last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Perfect Shape Medical Limited Been A Good Investment?
I think that the total shareholder return of 441%, over three years, would leave most Perfect Shape Medical Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared total CEO remuneration at Perfect Shape Medical 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.