Does Burwill Holdings Limited’s (HKG:24) CEO Pay Compare Well With Peers?
Shing Chan has been the CEO of Burwill Holdings Limited (HKG:24) since 1998. First, this article will compare CEO compensation with compensation at similar sized companies. Next, we’ll consider growth that the business demonstrates. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
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How Does Shing Chan’s Compensation Compare With Similar Sized Companies?
Our data indicates that Burwill Holdings Limited is worth HK$726m, and total annual CEO compensation is HK$7.9m. (This number is for the twelve months until 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$5.9m. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO compensation in that group is HK$1.7m.
Thus we can conclude that Shing Chan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Burwill Holdings Limited. However, this doesn’t necessarily mean the pay is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at Burwill Holdings has changed over time.
Is Burwill Holdings Limited Growing?
Over the last three years Burwill Holdings Limited has grown its earnings per share (EPS) by an average of 31% per year (using a line of best fit). In the last year, its revenue is down -7.1%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The lack of revenue growth isn’t ideal, but it is the bottom line that counts most in business.
We don’t have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Burwill Holdings Limited Been A Good Investment?
With a three year total loss of 44%, Burwill Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary…
We compared the total CEO remuneration paid by Burwill 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. Considering the per share profit growth, but keeping in mind the weak returns, we’d need more time to form a view on CEO compensation. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Burwill Holdings.
Or you might rather take a peek at this analytical visualization of historic cash flow, earnings and revenue.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
