Does Yu Tak International Holdings Limited's (HKG:8048) CEO Pay Compare Well With Peers?
In 2015 Xia Li was appointed CEO of Yu Tak International Holdings Limited (HKG:8048). This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Yu Tak International Holdings
How Does Xia Li's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Yu Tak International Holdings Limited has a market cap of HK$142m, and reported total annual CEO compensation of HK$1.0m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$951k. We looked at a group of companies with market capitalizations under HK$1.6b, and the median CEO total compensation was HK$1.7m.
A first glance this seems like a real positive for shareholders, since Xia Li 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 Yu Tak International Holdings has changed over time.
Is Yu Tak International Holdings Limited Growing?
Yu Tak International Holdings Limited has increased its earnings per share (EPS) by an average of 27% a year, over the last three years (using a line of best fit). It saw its revenue drop 19% over the last year.
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. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Yu Tak International Holdings Limited Been A Good Investment?
With a three year total loss of 44%, Yu Tak International Holdings Limited would certainly have some dissatisfied shareholders. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
In Summary...
It looks like Yu Tak International Holdings Limited pays its CEO less than similar sized companies.
Many would consider this to indicate that the pay is modest since the business is growing. Unfortunately, some shareholders may be disappointed with their returns, given the company's performance over the last three years. We're not critical of the remuneration Xia Li receives, but it would be good to see improved returns to shareholders before the remuneration grows too much. This sort of circumstance certainly justifies further research, because the investment returns might still come in the future. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Yu Tak International Holdings (free visualization of insider trades).
Important note: Yu Tak International 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.
