In This Article:
Lawrence Ho has been the CEO of Melco International Development Limited (HKG:200) since 2006. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. 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 Melco International Development
How Does Lawrence Ho's Compensation Compare With Similar Sized Companies?
Our data indicates that Melco International Development Limited is worth HK$31b, and total annual CEO compensation was reported as HK$207m for the year to December 2018. While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at HK$29m. We note that more than half of the total compensation is not the salary; and performance requirements may apply to this non-salary portion. We examined companies with market caps from HK$16b to HK$50b, and discovered that the median CEO total compensation of that group was HK$4.4m.
Thus we can conclude that Lawrence Ho receives more in total compensation than the median of a group of companies in the same market, and of similar size to Melco International Development Limited. However, this doesn't necessarily mean the pay is too high. We can better assess whether the pay is overly generous by looking into the underlying business performance.
You can see a visual representation of the CEO compensation at Melco International Development, below.
Is Melco International Development Limited Growing?
On average over the last three years, Melco International Development Limited has shrunk earnings per share by 111% each year (measured with a line of best fit). It achieved revenue growth of 5.9% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. And the modest revenue growth over 12 months isn't much comfort against the reduced earnings per share. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. You might want to check this free visual report on analyst forecasts for future earnings.
Has Melco International Development Limited Been A Good Investment?
Boasting a total shareholder return of 103% over three years, Melco International Development 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.