In This Article:
Man Yan Lee became the CEO of Lee & Man Chemical Company Limited (HKG:746) 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.
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How Does Man Yan Lee’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Lee & Man Chemical Company Limited has a market cap of HK$4.2b, and is paying total annual CEO compensation of HK$17m. (This figure is for the year to December 2017). While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at HK$1.1m. We examined companies with market caps from HK$1.6b to HK$6.3b, and discovered that the median CEO total compensation of that group was HK$1.9m.
Thus we can conclude that Man Yan Lee receives more in total compensation than the median of a group of companies in the same market, and of similar size to Lee & Man Chemical Company Limited. However, this doesn’t necessarily mean the pay is too high. 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 Lee & Man Chemical has changed from year to year.
Is Lee & Man Chemical Company Limited Growing?
Over the last three years Lee & Man Chemical Company Limited has grown its earnings per share (EPS) by an average of 57% per year (using a line of best fit). In the last year, its revenue is up 30%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. Most shareholders would be pleased to see strong revenue growth combined with EPS growth. This combo suggests a fast growing business. Although we don’t have analyst forecasts, you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Has Lee & Man Chemical Company Limited Been A Good Investment?
Boasting a total shareholder return of 147% over three years, Lee & Man Chemical Company Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.