Richard Yeung is the CEO of Convenience Retail Asia Limited (HKG:831). First, this article will compare CEO compensation with compensation at similar sized companies. 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 method should give us information to assess how appropriately the company pays the CEO.
Check out our latest analysis for Convenience Retail Asia
How Does Richard Yeung's Compensation Compare With Similar Sized Companies?
According to our data, Convenience Retail Asia Limited has a market capitalization of HK$2.8b, and paid its CEO total annual compensation worth HK$14m over the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at HK$4.0m. Importantly, there may be performance hurdles relating to the non-salary component of the total compensation. When we examined a selection of companies with market caps ranging from HK$1.6b to HK$6.2b, we found the median CEO total compensation was HK$2.7m.
Now let's take a look at the pay mix on an industry and company level to gain a better understanding of where Convenience Retail Asia stands. Speaking on an industry level, we can see that nearly 88% of total compensation represents salary, while the remainder of 12% is other remuneration. Readers will want to know that Convenience Retail Asia pays a modest slice of remuneration through salary, as compared to the wider sector.
It would therefore appear that Convenience Retail Asia Limited pays Richard Yeung 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 get a better idea of how generous the pay is by looking at the performance of the underlying business. The graphic below shows how CEO compensation at Convenience Retail Asia has changed from year to year.
Is Convenience Retail Asia Limited Growing?
Over the last three years Convenience Retail Asia Limited has seen earnings per share (EPS) move in a positive direction by an average of 14% per year (using a line of best fit). It achieved revenue growth of 5.9% over the last year.
This shows that the company has improved itself over the last few years. Good news for shareholders. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. We don't have analyst forecasts, but you might want to assess this data-rich visualization of earnings, revenue and cash flow.