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Victor Cha has been the CEO of HKR International Limited (HKG:480) since 2001. 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. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

Check out our latest analysis for HKR International

How Does Victor Cha's Compensation Compare With Similar Sized Companies?

Our data indicates that HKR International Limited is worth HK$5.8b, and total annual CEO compensation is HK$28m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at HK$7.7m. When we examined a selection of companies with market caps ranging from HK$3.1b to HK$12b, we found the median CEO total compensation was HK$3.4m.

Thus we can conclude that Victor Cha receives more in total compensation than the median of a group of companies in the same market, and of similar size to HKR International Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.

The graphic below shows how CEO compensation at HKR International has changed from year to year.

Is HKR International Limited Growing?

Over the last three years HKR International Limited has grown its earnings per share (EPS) by an average of 50% per year (using a line of best fit). In the last year, its revenue is up 73%.

Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. Although we don't have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has HKR International Limited Been A Good Investment?

I think that the total shareholder return of 39%, over three years, would leave most HKR International Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.

In Summary...

We compared total CEO remuneration at HKR International 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.

Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. As a result of this good performance, the CEO remuneration may well be quite reasonable. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling HKR International (free visualization of insider trades).

Important note: HKR International 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.