David Chiu has been the CEO of Far East Consortium International Limited (HKG:35) since 1997. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Far East Consortium International
How Does David Chiu's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Far East Consortium International Limited has a market cap of HK$7.6b, and reported total annual CEO compensation of HK$2.2m for the year to March 2019. Notably, the salary of HK$2.1m is the vast majority of the CEO compensation. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$3.1b to HK$13b. The median total CEO compensation was HK$3.3m.
Most shareholders would consider it a positive that David Chiu takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. Though positive, it's important we delve into the performance of the actual business.
You can see a visual representation of the CEO compensation at Far East Consortium International, below.
Is Far East Consortium International Limited Growing?
Over the last three years Far East Consortium International Limited has grown its earnings per share (EPS) by an average of 14% per year (using a line of best fit). It achieved revenue growth of 17% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Far East Consortium International Limited Been A Good Investment?
Far East Consortium International Limited has generated a total shareholder return of 22% over three years, so most shareholders would be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.
In Summary...
Far East Consortium International Limited is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. While some might be keen on seeing higher returns, our short analysis has not produced any evidence to suggest David Chiu is overcompensated. Few would complain about reasonable CEO remuneration when the business is growing earnings per share. But for me, it's even better if insiders are also buying shares with their own cold, hard, cash. Shareholders may want to check for free if Far East Consortium International insiders are buying or selling shares.