Is Plover Bay Technologies Limited's (HKG:1523) CEO Overpaid Relative To Its Peers?

Kit Wai Chau became the CEO of Plover Bay Technologies Limited (HKG:1523) in 2015. 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 - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.

See our latest analysis for Plover Bay Technologies

How Does Kit Wai Chau's Compensation Compare With Similar Sized Companies?

Our data indicates that Plover Bay Technologies Limited is worth HK$1.2b, and total annual CEO compensation was reported as US$247k for the year to December 2018. While we always look at total compensation first, we note that the salary component is less, at US$216k. We looked at a group of companies with market capitalizations from US$100m to US$400m, and the median CEO total compensation was US$291k.

So Kit Wai Chau receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.

You can see, below, how CEO compensation at Plover Bay Technologies has changed over time.

Is Plover Bay Technologies Limited Growing?

Plover Bay Technologies Limited has increased its earnings per share (EPS) by an average of 25% a year, over the last three years (using a line of best fit). Its revenue is up 13% over last year.

This shows that the company has improved itself over the last few years. Good news for shareholders. It's a real positive to see this sort of growth in a single year. That suggests a healthy and growing business. It could be important to check this free visual depiction of what analysts expect for the future.

Has Plover Bay Technologies Limited Been A Good Investment?

Boasting a total shareholder return of 80% over three years, Plover Bay Technologies Limited has done well by shareholders. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.

In Summary...

Kit Wai Chau is paid around the same as most CEOs of similar size companies.

Few would be critical of the leadership, since returns have been juicy and earnings per share are moving in the right direction. Although the pay is a normal amount, some shareholders probably consider it fair or modest, given the good performance of the stock. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Plover Bay Technologies (free visualization of insider trades).

If you want to buy a stock that is better than Plover Bay Technologies, this free list of high return, low debt companies is a great place to look.

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.