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In 2013 Kit Chung Ting was appointed CEO of Texwinca Holdings Limited (HKG:321). This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for Texwinca Holdings
How Does Kit Chung Ting's Compensation Compare With Similar Sized Companies?
Our data indicates that Texwinca Holdings Limited is worth HK$2.7b, and total annual CEO compensation was reported as HK$16m for the year to March 2019. While we always look at total compensation first, we note that the salary component is less, at HK$8.0m. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.3b, we found the median CEO total compensation was HK$2.5m.
As you can see, Kit Chung Ting is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean Texwinca Holdings Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
The graphic below shows how CEO compensation at Texwinca Holdings has changed from year to year.
Is Texwinca Holdings Limited Growing?
On average over the last three years, Texwinca Holdings Limited has shrunk earnings per share by 35% each year (measured with a line of best fit). It saw its revenue drop 8.3% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Texwinca Holdings Limited Been A Good Investment?
Given the total loss of 45% over three years, many shareholders in Texwinca Holdings Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.
In Summary...
We examined the amount Texwinca Holdings Limited pays its CEO, and compared it to the amount paid by similar sized companies. Our data suggests that it pays above the median CEO pay within that group.
We think many shareholders would be underwhelmed with the business growth over the last three years. Arguably worse, investors are without a positive return for the last three years. Some might well form the view that the CEO is paid too generously! Whatever your view on compensation, you might want to check if insiders are buying or selling Texwinca Holdings shares (free trial).