In This Article:
Ho Kwok is the CEO of Chaoda Modern Agriculture (Holdings) Limited (HKG:682). 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. This method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for Chaoda Modern Agriculture (Holdings)
How Does Ho Kwok's Compensation Compare With Similar Sized Companies?
According to our data, Chaoda Modern Agriculture (Holdings) Limited has a market capitalization of HK$155m, and paid its CEO total annual compensation worth CN¥978k over the year to June 2019. Notably, the salary of CN¥962k is the vast majority of the CEO compensation. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Chaoda Modern Agriculture (Holdings) stands. On an industry level, roughly 84% of total compensation represents salary and 16% is other remuneration. Investors will find it interesting that Chaoda Modern Agriculture (Holdings) pays the bulk of its rewards through a traditional salary, instead of non-salary benefits.
Most shareholders would consider it a positive that Ho Kwok takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business. The graphic below shows how CEO compensation at Chaoda Modern Agriculture (Holdings) has changed from year to year.
Is Chaoda Modern Agriculture (Holdings) Limited Growing?
Over the last three years Chaoda Modern Agriculture (Holdings) Limited has seen earnings per share (EPS) move in a positive direction by an average of 109% per year (using a line of best fit). In the last year, its revenue is down 20%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The lack of revenue growth isn't ideal, but it is the bottom line that counts most in business. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Chaoda Modern Agriculture (Holdings) Limited Been A Good Investment?
Since shareholders would have lost about 76% over three years, some Chaoda Modern Agriculture (Holdings) Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.