In This Article:
In 2010 Yury V. Makarov was appointed CEO of IRC Limited (HKG:1029). 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. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This method should give us information to assess how appropriately the company pays the CEO.
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How Does Yury V. Makarov’s Compensation Compare With Similar Sized Companies?
According to our data, IRC Limited has a market capitalization of HK$504m, and pays its CEO total annual compensation worth US$914k. (This number is for the twelve months until 2017). While we always look at total compensation first, we note that the salary component is less, at US$642k. We examined a group of similar sized companies, with market capitalizations of below US$200m. The median CEO compensation in that group is US$212k.
As you can see, Yury V. Makarov is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean IRC 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.
You can see, below, how CEO compensation at IRC has changed over time.
Is IRC Limited Growing?
Over the last three years IRC Limited has grown its earnings per share (EPS) by an average of 114% per year (using a line of best fit). In the last year, its revenue is up 149%.
This shows that the company has improved itself over the last few years. Good news for shareholders. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has IRC Limited Been A Good Investment?
Given the total loss of 51% over three years, many shareholders in IRC Limited are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn’t be too generous with CEO compensation.
In Summary…
We compared total CEO remuneration at IRC Limited with the amount paid at companies with a similar market capitalization. We found that it pays well over the median amount paid in the benchmark group.