In This Article:
The CEO of Yau Lee Holdings Limited (HKG:406) is Ip Wong. 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.
View 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$578m, 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 took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.7m.
Thus we can conclude that Ip Wong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Yau Lee Holdings Limited. However, this doesn't necessarily mean the pay is too high. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
You can see a visual representation of the CEO compensation at Yau Lee Holdings, below.
Is Yau Lee Holdings Limited Growing?
On average over the last three years, Yau Lee Holdings Limited has grown earnings per share (EPS) by 118% each year (using a line of best fit). Revenue was pretty flat on last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Revenue growth is a real positive for growth, but ultimately profits are more important. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Yau Lee Holdings Limited Been A Good Investment?
I think that the total shareholder return of 35%, over three years, would leave most Yau Lee Holdings Limited shareholders smiling. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
In Summary...
We compared the total CEO remuneration paid by Yau Lee Holdings Limited, and compared it to remuneration at a group of similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. In addition, shareholders have done well over the same time period. As a result of this good performance, the CEO remuneration may well be quite reasonable. Shareholders may want to check for free if Yau Lee Holdings insiders are buying or selling shares.