Seng-Hui Lee became the CEO of Allied Properties (H.K.) Limited (HKG:56) in 2010. 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. 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.

View our latest analysis for Allied Properties (H.K.)

How Does Seng-Hui Lee's Compensation Compare With Similar Sized Companies?

According to our data, Allied Properties (H.K.) Limited has a market capitalization of HK$10b, and paid its CEO total annual compensation worth HK$25m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$3.1m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. We examined companies with market caps from HK$7.8b to HK$25b, and discovered that the median CEO total compensation of that group was HK$4.1m.

As you can see, Seng-Hui Lee is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Allied Properties (H.K.) 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.

You can see, below, how CEO compensation at Allied Properties (H.K.) has changed over time.

Is Allied Properties (H.K.) Limited Growing?

On average over the last three years, Allied Properties (H.K.) Limited has shrunk earnings per share by 18% each year (measured with a line of best fit). It achieved revenue growth of 6.4% over the last year.

Unfortunately, earnings per share have trended lower over the last three years. The fairly low revenue growth fails to impress given that the earnings per share is down. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Allied Properties (H.K.) Limited Been A Good Investment?

Allied Properties (H.K.) Limited has not done too badly by shareholders, with a total return of 0.6%, over three years. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

We compared total CEO remuneration at Allied Properties (H.K.) Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.

We think many shareholders would be underwhelmed with the business growth over the last three years. While shareholder returns are acceptable, they don't delight. So we doubt many shareholders would consider the CEO pay to be particularly modest! Whatever your view on compensation, you might want to check if insiders are buying or selling Allied Properties (H.K.) shares (free trial).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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