In This Article:
In 2004 William Ma was appointed CEO of Kerry Logistics Network Limited (HKG:636). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. 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.
Check out our latest analysis for Kerry Logistics Network
How Does William Ma's Compensation Compare With Similar Sized Companies?
Our data indicates that Kerry Logistics Network Limited is worth HK$24b, and total annual CEO compensation is HK$23m. (This is based on the year to December 2018). We think total compensation is more important but we note that the CEO salary is lower, at HK$5.6m. We looked at a group of companies with market capitalizations from HK$16b to HK$50b, and the median CEO total compensation was HK$4.2m.
As you can see, William Ma is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kerry Logistics Network Limited is paying too much. We can get a better idea of how generous the pay is by looking at the performance of the underlying business.
The graphic below shows how CEO compensation at Kerry Logistics Network has changed from year to year.
Is Kerry Logistics Network Limited Growing?
On average over the last three years, Kerry Logistics Network Limited has grown earnings per share (EPS) by 11% each year (using a line of best fit). It achieved revenue growth of 24% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. It could be important to check this free visual depiction of what analysts expect for the future.
Has Kerry Logistics Network Limited Been A Good Investment?
Boasting a total shareholder return of 37% over three years, Kerry Logistics Network Limited 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...
We examined the amount Kerry Logistics Network 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.
Importantly, though, the company has impressed with its earnings per share growth, over three years. On top of that, in the same period, returns to shareholders have been great. So, considering this good performance, the CEO compensation may be quite appropriate. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Kerry Logistics Network (free visualization of insider trades).