Is Celestial Asia Securities Holdings Limited's (HKG:1049) CEO Paid Enough Relative To Peers?

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The CEO of Celestial Asia Securities Holdings Limited (HKG:1049) is Bankee Kwan. 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 - 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 Celestial Asia Securities Holdings

How Does Bankee Kwan's Compensation Compare With Similar Sized Companies?

According to our data, Celestial Asia Securities Holdings Limited has a market capitalization of HK$96m, and paid its CEO total annual compensation worth HK$1.5m over the year to December 2018. Notably, the salary of HK$1.5m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.7m.

That means Bankee Kwan receives fairly typical remuneration for the CEO of a company that size. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

The graphic below shows how CEO compensation at Celestial Asia Securities Holdings has changed from year to year.

SEHK:1049 CEO Compensation, November 10th 2019
SEHK:1049 CEO Compensation, November 10th 2019

Is Celestial Asia Securities Holdings Limited Growing?

Over the last three years Celestial Asia Securities Holdings Limited has shrunk its earnings per share by an average of 68% per year (measured with a line of best fit). In the last year, its revenue is up 5.5%.

Sadly for shareholders, earnings per share are actually down, over three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Celestial Asia Securities Holdings Limited Been A Good Investment?

With a three year total loss of 81%, Celestial Asia Securities Holdings Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Bankee Kwan is paid around what is normal the leaders of comparable size companies.

The company isn't growing EPS, and shareholder returns have been disappointing. Suffice it to say, we don't think the CEO is underpaid! So you may want to check if insiders are buying Celestial Asia Securities Holdings shares with their own money (free access).

Important note: Celestial Asia Securities 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.

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