Wa Hoi has been the CEO of Powerlong Real Estate Holdings Limited (HKG:1238) since 2009. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. 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.
Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
How Does Wa Hoi's Compensation Compare With Similar Sized Companies?
Our data indicates that Powerlong Real Estate Holdings Limited is worth HK$14b, and total annual CEO compensation is CN¥1.5m. (This number is for the twelve months until December 2018). That's a notable increase of 49% on last year. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at CN¥770k. We looked at a group of companies with market capitalizations from CN¥6.9b to CN¥22b, and the median CEO total compensation was CN¥3.2m.
Most shareholders would consider it a positive that Wa Hoi takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Powerlong Real Estate Holdings, below.
Is Powerlong Real Estate Holdings Limited Growing?
On average over the last three years, Powerlong Real Estate Holdings Limited has grown earnings per share (EPS) by 14% each year (using a line of best fit). In the last year, its revenue is up 26%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. It could be important to check this free visual depiction of what analysts expect for the future.
Has Powerlong Real Estate Holdings Limited Been A Good Investment?
I think that the total shareholder return of 173%, over three years, would leave most Powerlong Real Estate Holdings Limited shareholders smiling. 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.
It appears that Powerlong Real Estate Holdings Limited remunerates its CEO below most similar sized companies. Many would consider this to indicate that the pay is modest since the business is growing. And given most shareholders are probably very happy with recent returns, you might even think that Wa Hoi deserves a raise!
It is relatively rare to see a modestly paid CEO when performance is so impressive. It would be even more positive if company insiders are buying shares. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Powerlong Real Estate Holdings.
Important note: Powerlong Real Estate 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 email@example.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.