Is Agile Group Holdings Limited (HKG:3383) Overpaying Its CEO?
Zhuo Lin Chen has been the CEO of Agile Group Holdings Limited (HKG:3383) since 2014. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
Check out our latest analysis for Agile Group Holdings
How Does Zhuo Lin Chen's Compensation Compare With Similar Sized Companies?
Our data indicates that Agile Group Holdings Limited is worth HK$43b, and total annual CEO compensation was reported as CN¥3.8m for the year to December 2018. It is worth noting that the CEO compensation consists almost entirely of the salary, worth CN¥3.8m. We looked at a group of companies with market capitalizations from CN¥4.0b to CN¥12b, and the median CEO total compensation was CN¥615k.
This would give shareholders a good impression of the company, since most similar size companies have to pay more, leaving less for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Agile Group Holdings, below.
Is Agile Group Holdings Limited Growing?
Agile Group Holdings Limited has increased its earnings per share (EPS) by an average of 50% a year, over the last three years (using a line of best fit). It achieved revenue growth of 10% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Agile Group Holdings Limited Been A Good Investment?
Boasting a total shareholder return of 217% over three years, Agile Group Holdings Limited has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Agile Group Holdings Limited is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Zhuo Lin Chen deserves a raise! Most shareholders like to see a modestly paid CEO combined with strong performance by the company. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Agile Group Holdings.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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