In This Article:
Ip Wong is the CEO of Yau Lee Holdings Limited (HKG:406). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Yau Lee Holdings
How Does Ip Wong's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Yau Lee Holdings Limited has a market cap of HK$504m, and reported total annual CEO compensation of HK$10m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$9.1m. 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$1.8m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Yau Lee Holdings stands. Talking in terms of the sector, salary represented approximately 90% of total compensation out of all the companies we analysed, while other remuneration made up 10% of the pie. Yau Lee Holdings is largely mirroring the industry average when it comes to the share a salary enjoys in overall compensation
As you can see, Ip Wong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Yau Lee Holdings Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Yau Lee Holdings has changed from year to year.
Is Yau Lee Holdings Limited Growing?
On average over the last three years, Yau Lee Holdings Limited has seen earnings per share (EPS) move in a favourable direction by 96% each year (using a line of best fit). It achieved revenue growth of 16% over the last year.
This demonstrates that the company has been improving recently. A good result. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yau Lee Holdings Limited Been A Good Investment?
Yau Lee Holdings Limited has served shareholders reasonably well, with a total return of 20% over three years. But they probably don't want to see the CEO paid more than is normal for companies around the same size.