Is Ban Loong Holdings Limited (HKG:30) Excessively Paying Its CEO?
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Wang Chow became the CEO of Ban Loong Holdings Limited (HKG:30) in 2017. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Ban Loong Holdings
How Does Wang Chow's Compensation Compare With Similar Sized Companies?
According to our data, Ban Loong Holdings Limited has a market capitalization of HK$1.5b, and pays its CEO total annual compensation worth HK$1.3m. (This number is for the twelve months until March 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$1.2m. We looked at a group of companies with market capitalizations from HK$782m to HK$3.1b, and the median CEO total compensation was HK$2.1m.
A first glance this seems like a real positive for shareholders, since Wang Chow is paid less than the average total compensation paid by similar sized companies. Though positive, it's important we delve into the performance of the actual business.
You can see, below, how CEO compensation at Ban Loong Holdings has changed over time.
Is Ban Loong Holdings Limited Growing?
Over the last three years Ban Loong Holdings Limited has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). It achieved revenue growth of 19% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. 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 Ban Loong Holdings Limited Been A Good Investment?
Most shareholders would probably be pleased with Ban Loong Holdings Limited for providing a total return of 93% over three years. 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...
Ban Loong 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 strong history of shareholder returns might even have some thinking that Wang Chow deserves a raise!
It's not often we see shareholders do so well, and yet the CEO is paid modestly. It would be even more positive if company insiders are buying shares. Shareholders may want to check for free if Ban Loong Holdings insiders are buying or selling shares.
Important note: Ban Loong Holdings may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.
