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James Wong became the CEO of Kwoon Chung Bus Holdings Limited (HKG:306) in 2014. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. After that, we will consider the growth in the business. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This process should give us an idea about how appropriately the CEO is paid.
Check out our latest analysis for Kwoon Chung Bus Holdings
How Does James Wong's Compensation Compare With Similar Sized Companies?
Our data indicates that Kwoon Chung Bus Holdings Limited is worth HK$2.0b, and total annual CEO compensation is HK$5.8m. (This number is for the twelve months until March 2018). It is worth noting that the CEO compensation consists almost entirely of the salary, worth HK$5.8m. We examined companies with market caps from HK$780m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.0m.
As you can see, James Wong is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Kwoon Chung Bus Holdings 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.
You can see, below, how CEO compensation at Kwoon Chung Bus Holdings has changed over time.
Is Kwoon Chung Bus Holdings Limited Growing?
Over the last three years Kwoon Chung Bus Holdings Limited has shrunk its earnings per share by an average of 14% per year (measured with a line of best fit). It achieved revenue growth of 17% over the last year.
Few shareholders would be pleased to read that earnings per share are lower over three years. There's no doubt that the silver lining is that revenue is up. But it isn't sufficiently fast growth to overlook the fact that earnings per share has gone backwards over three years. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Kwoon Chung Bus Holdings Limited Been A Good Investment?
With a total shareholder return of 27% over three years, Kwoon Chung Bus Holdings Limited shareholders would, in general, be reasonably content. But they would probably prefer not to see CEO compensation far in excess of the median.