Yahoo Finance Is Macau Legend Development Limited’s (HKG:1680) CEO Paid At A Competitive Rate?
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David Chow has been the CEO of Macau Legend Development Limited (HKG:1680) since 2006. First, this article will compare CEO compensation with compensation at similar sized companies. 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. This method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Macau Legend Development
How Does David Chow’s Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Macau Legend Development Limited has a market cap of HK$8.5b, and is paying total annual CEO compensation of HK$11m. (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 HK$8.0m. As part of our analysis we looked at companies in the same jurisdiction, with market capitalizations of HK$3.1b to HK$13b. The median total CEO compensation was HK$3.4m.
It would therefore appear that Macau Legend Development Limited pays David Chow 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. 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 Macau Legend Development, below.
Is Macau Legend Development Limited Growing?
Over the last three years Macau Legend Development Limited has grown its earnings per share (EPS) by an average of 76% per year (using a line of best fit). Its revenue is up 16% over last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It’s also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. Although we don’t have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Macau Legend Development Limited Been A Good Investment?
Boasting a total shareholder return of 52% over three years, Macau Legend 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.
In Summary…
We compared total CEO remuneration at Macau Legend Development Limited with the amount paid at companies with a similar market capitalization. Our data suggests that it pays above the median CEO pay within that group.
However, the earnings per share growth over three years is certainly impressive. On top of that, in the same period, returns to shareholders have been great. Considering this fine result for shareholders, we daresay the CEO compensation might be apt. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Macau Legend Development (free visualization of insider trades).
Important note: Macau Legend Development may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
