Should You Worry About CK Life Sciences Int'l., (Holdings) Inc.'s (HKG:775) CEO Pay?
The CEO of CK Life Sciences Int'l., (Holdings) Inc. (HKG:775) is Hing Lam Kam. 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. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for CK Life Sciences Int'l. (Holdings)
How Does Hing Lam Kam's Compensation Compare With Similar Sized Companies?
Our data indicates that CK Life Sciences Int'l., (Holdings) Inc. is worth HK$8.6b, and total annual CEO compensation was reported as HK$3.8m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at . We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from HK$3.1b to HK$12b, and discovered that the median CEO total compensation of that group was HK$3.7m.
So Hing Lam Kam is paid around the average of the companies we looked at. This doesn't tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
The graphic below shows how CEO compensation at CK Life Sciences Int'l. (Holdings) has changed from year to year.
Is CK Life Sciences Int'l., (Holdings) Inc. Growing?
On average over the last three years, CK Life Sciences Int'l., (Holdings) Inc. has grown earnings per share (EPS) by 4.2% each year (using a line of best fit). It achieved revenue growth of 7.5% over the last year.
I would argue that the improvement in revenue isn't particularly impressive, but I'm happy with the modest EPS growth. So there are some positives here, but not enough to earn high praise. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CK Life Sciences Int'l., (Holdings) Inc. Been A Good Investment?
Boasting a total shareholder return of 34% over three years, CK Life Sciences Int'l., (Holdings) Inc. has done well by shareholders. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary...
Hing Lam Kam is paid around what is normal the leaders of comparable size companies.
While we would like to see improved growth metrics, there is no doubt that the total returns have been great, over the last three years. So we can conclude that on this analysis the CEO compensation seems pretty sound. Whatever your view on compensation, you might want to check if insiders are buying or selling CK Life Sciences Int'l. (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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