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Frankie Li has been the CEO of Yeebo (International Holdings) Limited (HKG:259) since 1970. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Next, we'll consider growth that the business demonstrates. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.
See our latest analysis for Yeebo (International Holdings)
How Does Frankie Li's Compensation Compare With Similar Sized Companies?
According to our data, Yeebo (International Holdings) Limited has a market capitalization of HK$1.2b, and pays its CEO total annual compensation worth HK$5.6m. (This figure is for the year to March 2018). While we always look at total compensation first, we note that the salary component is less, at HK$4.4m. We examined companies with market caps from HK$784m to HK$3.1b, and discovered that the median CEO total compensation of that group was HK$2.0m.
It would therefore appear that Yeebo (International Holdings) Limited pays Frankie Li more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. 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 Yeebo (International Holdings) has changed from year to year.
Is Yeebo (International Holdings) Limited Growing?
On average over the last three years, Yeebo (International Holdings) Limited has shrunk earnings per share by 23% each year (measured with a line of best fit). In the last year, its revenue changed by just 0.3%.
Few shareholders would be pleased to read that earnings per share are lower over three years. And the flat revenue hardly impresses. It's hard to argue the company is firing on all cylinders, so shareholders might be averse to high CEO remuneration. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Yeebo (International Holdings) Limited Been A Good Investment?
Given the total loss of 33% over three years, many shareholders in Yeebo (International Holdings) Limited are probably rather dissatisfied, to say the least. It therefore might be upsetting for shareholders if the CEO were paid generously.