In This Article:
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The CEO of Road King Infrastructure Limited (HKG:1098) is Yuk Ko. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Road King Infrastructure
How Does Yuk Ko's Compensation Compare With Similar Sized Companies?
Our data indicates that Road King Infrastructure Limited is worth HK$13b, and total annual CEO compensation is HK$34m. (This is based on the year to December 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$7.6m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$7.8b to HK$25b. The median total CEO compensation was HK$3.3m.
As you can see, Yuk Ko is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Road King Infrastructure Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
The graphic below shows how CEO compensation at Road King Infrastructure has changed from year to year.
Is Road King Infrastructure Limited Growing?
On average over the last three years, Road King Infrastructure Limited has grown earnings per share (EPS) by 46% each year (using a line of best fit). In the last year, its revenue is up 52%.
This demonstrates that the company has been improving recently. A good result. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Road King Infrastructure Limited Been A Good Investment?
I think that the total shareholder return of 247%, over three years, would leave most Road King Infrastructure Limited shareholders smiling. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
We compared the total CEO remuneration paid by Road King Infrastructure Limited, and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.