Why China All Access (Holdings) Limited's (HKG:633) CEO Pay Matters To You
Kwok Keung Shao is the CEO of China All Access (Holdings) Limited (HKG:633). First, this article will compare CEO compensation with compensation at similar sized companies. Next, we'll consider growth that the business demonstrates. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for China All Access (Holdings)
How Does Kwok Keung Shao's Compensation Compare With Similar Sized Companies?
Our data indicates that China All Access (Holdings) Limited is worth HK$444m, and total annual CEO compensation was reported as CN¥2.8m for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CN¥2.2m. We looked at a group of companies with market capitalizations under CN¥1.4b, and the median CEO total compensation was CN¥1.6m.
As you can see, Kwok Keung Shao is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China All Access (Holdings) Limited is paying too much. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see, below, how CEO compensation at China All Access (Holdings) has changed over time.
Is China All Access (Holdings) Limited Growing?
China All Access (Holdings) Limited has reduced its earnings per share by an average of 112% a year, over the last three years (measured with a line of best fit). Its revenue is up 45% over last year.
Investors should note that, over three years, earnings per share are down. But on the other hand, revenue growth is strong, suggesting a brighter future. In conclusion we can't form a strong opinion about business performance yet; but it's one worth watching. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has China All Access (Holdings) Limited Been A Good Investment?
Given the total loss of 91% over three years, many shareholders in China All Access (Holdings) Limited are probably rather dissatisfied, to say the least. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
We examined the amount China All Access (Holdings) Limited pays its CEO, and compared it to the amount paid by similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
The growth in the business has been uninspiring, but the shareholder returns have arguably been worse, over the last three years. Although we'd stop short of calling it inappropriate, we think the CEO compensation is probably more on the generous side of things. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling China All Access (Holdings) (free visualization of insider trades).
Important note: China All Access (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.
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.
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. Thank you for reading.
