In This Article:
Kin Kwok is the CEO of CL Group (Holdings) Limited (HKG:8098). 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 method should give us information to assess how appropriately the company pays the CEO.
View our latest analysis for CL Group (Holdings)
How Does Kin Kwok's Compensation Compare With Similar Sized Companies?
Our data indicates that CL Group (Holdings) Limited is worth HK$227m, and total annual CEO compensation is HK$1.1m. (This figure is for the year to March 2018). Notably, the salary of HK$1.1m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.5m.
So Kin Kwok receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance.
You can see, below, how CEO compensation at CL Group (Holdings) has changed over time.
Is CL Group (Holdings) Limited Growing?
On average over the last three years, CL Group (Holdings) Limited has shrunk earnings per share by 15% each year (measured with a line of best fit). In the last year, its revenue is down -3.3%.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has CL Group (Holdings) Limited Been A Good Investment?
Since shareholders would have lost about 41% over three years, some CL Group (Holdings) Limited shareholders would surely be feeling negative emotions. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
Remuneration for Kin Kwok is close enough to the median pay for a CEO of a similar sized company .
Returns have been disappointing and the company is not growing its earnings per share. Suffice it to say, we don't think the CEO is underpaid! CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling CL Group (Holdings) (free visualization of insider trades).