Is Perfect Group International Holdings Limited's (HKG:3326) CEO Overpaid Relative To Its Peers?
Kin Kan became the CEO of Perfect Group International Holdings Limited (HKG:3326) in 2015. 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 method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Perfect Group International Holdings
How Does Kin Kan's Compensation Compare With Similar Sized Companies?
According to our data, Perfect Group International Holdings Limited has a market capitalization of HK$864m, and paid its CEO total annual compensation worth HK$3.7m over the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at HK$3.5m. We took a group of companies with market capitalizations below HK$1.6b, and calculated the median CEO total compensation to be HK$1.8m.
Thus we can conclude that Kin Kan receives more in total compensation than the median of a group of companies in the same market, and of similar size to Perfect Group International 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.
The graphic below shows how CEO compensation at Perfect Group International Holdings has changed from year to year.
Is Perfect Group International Holdings Limited Growing?
On average over the last three years, Perfect Group International Holdings Limited has grown earnings per share (EPS) by 23% each year (using a line of best fit). It achieved revenue growth of 81% over the last year.
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. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Perfect Group International Holdings Limited Been A Good Investment?
Perfect Group International Holdings Limited has generated a total shareholder return of 1.0% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.
In Summary...
We compared the total CEO remuneration paid by Perfect Group International 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.
However, the earnings per share growth over three years is certainly impressive. We also think investors are doing ok, over the same time period. So, considering the EPS growth we do not wish to criticize the level of CEO compensation, though we'd recommend further research on management. Whatever your view on compensation, you might want to check if insiders are buying or selling Perfect Group International Holdings shares (free trial).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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.
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