Peter Sun has been the CEO of KFM Kingdom Holdings Limited (HKG:3816) since 2016. 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 KFM Kingdom Holdings

How Does Peter Sun's Compensation Compare With Similar Sized Companies?

Our data indicates that KFM Kingdom Holdings Limited is worth HK$222m, and total annual CEO compensation is HK$3.9m. (This number is for the twelve months until March 2019). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$3.9m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.9m.

It would therefore appear that KFM Kingdom Holdings Limited pays Peter Sun 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. 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 KFM Kingdom Holdings has changed over time.

Is KFM Kingdom Holdings Limited Growing?

Over the last three years KFM Kingdom Holdings Limited has grown its earnings per share (EPS) by an average of 113% per year (using a line of best fit). It achieved revenue growth of 2.3% over the last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's nice to see a little revenue growth, as this is consistent with healthy business conditions. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has KFM Kingdom Holdings Limited Been A Good Investment?

Given the total loss of 56% over three years, many shareholders in KFM Kingdom Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

We compared total CEO remuneration at KFM Kingdom Holdings Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.

However, the earnings per share growth over three years is certainly impressive. However, the returns to investors are far less impressive, over the same period. While EPS is positive, we'd say shareholders would want better returns before the CEO is paid much more. So you may want to check if insiders are buying KFM Kingdom Holdings shares with their own money (free access).