Should You Worry About International Business Settlement Holdings Limited's (HKG:147) CEO Salary Level?

In this article:

Leong Yuen is the CEO of International Business Settlement Holdings Limited (HKG:147). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. 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.

See our latest analysis for International Business Settlement Holdings

How Does Leong Yuen's Compensation Compare With Similar Sized Companies?

According to our data, International Business Settlement Holdings Limited has a market capitalization of HK$3.8b, and paid its CEO total annual compensation worth HK$960k over the year to March 2019. It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$960k. We looked at a group of companies with market capitalizations from HK$1.6b to HK$6.3b, and the median CEO total compensation was HK$2.4m.

Most shareholders would consider it a positive that Leong Yuen takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. However, before we heap on the praise, we should delve deeper to understand business performance.

The graphic below shows how CEO compensation at International Business Settlement Holdings has changed from year to year.

SEHK:147 CEO Compensation, October 13th 2019
SEHK:147 CEO Compensation, October 13th 2019

Is International Business Settlement Holdings Limited Growing?

On average over the last three years, International Business Settlement Holdings Limited has grown earnings per share (EPS) by 8.6% each year (using a line of best fit). Its revenue is up 52% over last year.

I like the look of the strong year-on-year improvement in revenue. With that in mind, the modestly improving EPS seems positive. I'd stop short of saying the business performance is amazing, but there are enough positives to justify further research, or even adding the stock to your watch-list. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has International Business Settlement Holdings Limited Been A Good Investment?

Given the total loss of 83% over three years, many shareholders in International Business Settlement Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

It appears that International Business Settlement Holdings Limited remunerates its CEO below most similar sized companies.

Leong Yuen is paid less than CEOs of similar size companies, but growth hasn't been particularly impressive and the total shareholder return over three years would leave many disappointed. Many shareholders would probably like to see improvements, but our analysis does not suggest that CEO compensation is too generous. Shareholders may want to check for free if International Business Settlement Holdings insiders are buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

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