In This Article:
Thomas Chan became the CEO of Wang On Group Limited (HKG:1222) in 2005. 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. 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.
Check out our latest analysis for Wang On Group
How Does Thomas Chan's Compensation Compare With Similar Sized Companies?
Our data indicates that Wang On Group Limited is worth HK$1.5b, and total annual CEO compensation was reported as HK$7.1m for the year to March 2019. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$2.8m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from HK$784m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.2m.
As you can see, Thomas Chan is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Wang On Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Wang On Group has changed from year to year.
Is Wang On Group Limited Growing?
On average over the last three years, Wang On Group Limited has grown earnings per share (EPS) by 16% each year (using a line of best fit). It achieved revenue growth of 53% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Wang On Group Limited Been A Good Investment?
I think that the total shareholder return of 70%, over three years, would leave most Wang On Group Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
We compared total CEO remuneration at Wang On Group 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.