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Is Polyard Petroleum International Group Limited (HKG:8011) Excessively Paying Its CEO?

Simply Wall St

In 2010 Chun Liang Lai was appointed CEO of Polyard Petroleum International Group Limited (HKG:8011). 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.

View our latest analysis for Polyard Petroleum International Group

How Does Chun Liang Lai's Compensation Compare With Similar Sized Companies?

Our data indicates that Polyard Petroleum International Group Limited is worth HK$470m, and total annual CEO compensation was reported as HK$420k for the year to December 2018. Notably, the salary of HK$420k is the vast majority of the CEO compensation. We examined a group of similar sized companies, with market capitalizations of below HK$1.6b. The median CEO total compensation in that group is HK$1.8m.

A first glance this seems like a real positive for shareholders, since Chun Liang Lai is paid less than the average total compensation paid by similar sized companies. While this is a good thing, you'll need to understand the business better before you can form an opinion.

You can see, below, how CEO compensation at Polyard Petroleum International Group has changed over time.

SEHK:8011 CEO Compensation, January 14th 2020

Is Polyard Petroleum International Group Limited Growing?

Polyard Petroleum International Group Limited has increased its earnings per share (EPS) by an average of 30% a year, over the last three years (using a line of best fit). In the last year, its revenue is down 68%.

This demonstrates that the company has been improving recently. A good result. Revenue growth is a real positive for growth, but ultimately profits are more important. We don't have analyst forecasts, but you could get a better understanding of its growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Has Polyard Petroleum International Group Limited Been A Good Investment?

With a three year total loss of 52%, Polyard Petroleum International Group Limited would certainly have some dissatisfied shareholders. It therefore might be upsetting for shareholders if the CEO were paid generously.

In Summary...

Polyard Petroleum International Group Limited is currently paying its CEO below what is normal for companies of its size.

Since the business is growing, many would argue this suggests the pay is modest. Despite some positives, it is likely that shareholders wanted better returns, given the performance over the last three years. So while we would not say that Chun Liang Lai is generously paid, it would be good to see an improvement in business performance before too an increase in pay. When I see fairly low remuneration, combined with earnings per share growth, but without big share price gains, it makes me want to research the potential for future gains. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Polyard Petroleum International Group (free visualization of insider trades).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.