Does Kingdom Holdings Limited's (HKG:528) CEO Salary Compare Well With Others?
The CEO of Kingdom Holdings Limited (HKG:528) is Weiming Ren. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. Then we'll look at a snap shot of the business growth. And finally we will reflect on how common stockholders have fared in the last few years, as a secondary measure of performance. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Kingdom Holdings
How Does Weiming Ren's Compensation Compare With Similar Sized Companies?
According to our data, Kingdom Holdings Limited has a market capitalization of HK$905m, and paid its CEO total annual compensation worth CN¥1.5m over the year to December 2018. Notably, the salary of CN¥1.5m is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below CN¥1.4b. The median CEO total compensation in that group is CN¥1.6m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Kingdom Holdings stands. Speaking on an industry level, we can see that nearly 87% of total compensation represents salary, while the remainder of 13% is other remuneration. Kingdom Holdings is focused on going down a more traditional approach and is paying a higher proportion of compensation through salary, as compared to non-salary benefits.
So Weiming Ren receives a similar amount to the median CEO pay, amongst the companies we looked at. While this data point isn't particularly informative alone, it gains more meaning when considered with business performance. You can see, below, how CEO compensation at Kingdom Holdings has changed over time.
Is Kingdom Holdings Limited Growing?
Over the last three years Kingdom Holdings Limited has seen earnings per share (EPS) move in a positive direction by an average of 66% per year (using a line of best fit). In the last year, its revenue is up 20%.
This demonstrates that the company has been improving recently. A good result. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. Although we don't have analyst forecasts shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Kingdom Holdings Limited Been A Good Investment?
I think that the total shareholder return of 40%, over three years, would leave most Kingdom Holdings Limited shareholders smiling. This strong performance might mean some shareholders don't mind if the CEO were to be paid more than is normal for a company of its size.
In Summary...
Weiming Ren is paid around the same as most CEOs of similar size companies.
Shareholders would surely be happy to see that shareholder returns have been great, and the earnings per share are up. Indeed, many might consider the pay rather modest, given the solid company performance! Looking into other areas, we've picked out 2 warning signs for Kingdom Holdings that investors should think about before committing capital to this stock.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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