In This Article:
Mei Xie has been the CEO of Overseas Chinese Town (Asia) Holdings Limited (HKG:3366) since 2010. 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. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Overseas Chinese Town (Asia) Holdings
How Does Mei Xie’s Compensation Compare With Similar Sized Companies?
According to our data, Overseas Chinese Town (Asia) Holdings Limited has a market capitalization of HK$1.8b, and pays its CEO total annual compensation worth CN¥1.4m. That’s a notable increase of 43% on last year. When we examined a selection of companies with market caps ranging from CN¥696m to CN¥2.8b, we found the median CEO compensation was CN¥1.9m.
So Mei Xie receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn’t particularly informative alone, it gains more meaning when considered with business performance.
The graphic below shows how CEO compensation at Overseas Chinese Town (Asia) Holdings has changed from year to year.
Is Overseas Chinese Town (Asia) Holdings Limited Growing?
Over the last three years Overseas Chinese Town (Asia) Holdings Limited has grown its earnings per share (EPS) by an average of 45% per year. Its revenue is down -25% over last year.
This demonstrates that the company has been improving recently. A good result. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Overseas Chinese Town (Asia) Holdings Limited Been A Good Investment?
Given the total loss of 11% over three years, many shareholders in Overseas Chinese Town (Asia) Holdings Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
Mei Xie is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it’s disappointing to see negative shareholder returns over three years. We’d be surprised if shareholders want to see a pay rise for the CEO, but we’d stop short of calling their pay too generous. Whatever your view on compensation, you might want to check if insiders are buying or selling Overseas Chinese Town (Asia) Holdings Limited shares (free trial).